The following conditions contribute directly to a high risk of the presentation of misleading (financial) statements from organizations | systems:
- Demand for growth (i.e., increased output at the expense of sound outcome);
- Demand to do more with less (i.e., increased output from decreased input).
The following conditions contribute indirectly to a high risk of the presentation of misleading (financial) statements from organizations | systems:
- Supply of extrinsic agents (e.g., regulators, judiciary) supporting the public interest (cf. private / proprietary interest);
- Supply of intrinsic agents (e.g., internal auditors) supporting ethics and integrity (cf. procedural and substantive due process).
Perhaps, the set of bodily diseases commonly referred to as “cancer” is most emblematic of a criminogenic organization | system. Pathogenic agents that should have been expelled and ostracized grow more mightily, while benevolent agents that should dominate in a healthy environment get suppressed and squelched. The organization | system gets seriously weakened from the inside-out like rotting fruit (cf. waxed fruit).