The correct answer is: Staff not taking their full holiday entitlements
Rationale: This may seem like normal behaviour in a 'workaholic' office culture, but failure to take full holiday entitlement may signal an employee trying to prevent a temporary replacement from uncovering a fraud.
The other options are factors in reducing risk: lack of segregation enables fraud to go undetected; low staff morale is often a motive for fraud (in retaliation against the firm); and an autocratic management style may prevent questioning.
Pitfalls: Ensure that you know what 'segregation of duties' means: otherwise, it might look like a risk factor (because it sounds like allowing people to work independently and unsupervised, say).
