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Sycamore Inc. has a simple organizational structure with few specialized departments. The structure of Sycamore Inc. increases the likelihood that fraud will go undetected within the organization.
Suggested Answer: A
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Simple organizational structures often suffer from lack of segregation of duties and fewer levels of oversight. According to the ACFE Manual:
''A simple or poorly designed structure can inhibit accountability and effective oversight. Lack of defined roles and responsibilities can increase the likelihood that fraud will go undetected.''
12 comments · newest first
TH
Theron
2 months ago
I’m not so sure. It could also mean quicker communication.
BE
Beatriz
2 months ago
I agree, true. Simple structures can hide issues.
NA
Nada
2 months ago
I think it's true. Less oversight means more chances for fraud.
GE
Geoffrey
3 months ago
Not sure about that, some companies thrive with fewer layers.
CO
Cordie
3 months ago
Definitely true, more chances for things to slip through the cracks.
SH
Shantell
3 months ago
Surprised to hear that! I thought simpler meant easier to manage.
UL
Ula
3 months ago
I think it's false, a simple structure can also mean faster communication.
MA
Maryann
3 months ago
Totally agree, fewer departments can lead to less oversight.
RO
Rosendo
3 months ago
I feel like there might be exceptions, but overall, I lean towards A being correct based on what we studied.
MI
Mila
4 months ago
This seems similar to a practice question we did about organizational structures and fraud risks. I think the answer is A.
SH
Shanda
4 months ago
I'm not entirely sure, but I think we covered that fewer departments could mean fewer checks and balances.
NI
Nida
4 months ago
I remember discussing how a simple structure can lead to less oversight, which might make fraud easier to commit.