True or False: Strategy factors such as a lack of business strategy result in a higher risk of fraud.

The assertion that a lack of business strategy results in a higher risk of fraud is accurate. When an organization lacks a clear and robust business strategy, it often leads to insufficient oversight and ineffective controls. In the absence of structured goals and strategic direction, employees might feel less engaged or aligned with the organization's mission, which can create an environment where ethical standards are compromised.

Furthermore, without a well-defined strategy, there may be unclear roles and responsibilities, enhancing the possibility for fraudulent activities to occur unnoticed. A comprehensive strategic framework typically includes measures for risk management, compliance, and integrity, all of which are crucial for establishing a culture of accountability and transparency. Therefore, the connection between the absence of a business strategy and an increased risk of fraud is well-supported in organizational behavior and ethics literature, making the statement true.