Employee fraud typically occurs at levels above where the internal control system is effective.Select one:TrueFalse

The statement is True.

Employee fraud often targets weaker points in an organization, which can often be levels that are not as closely monitored by internal controls. Generally, effective internal controls are designed to catch or deter fraud at lower levels, where transactions are more routine. However, when employees operate at higher levels, they may have more authority and access to resources, which can create opportunities for fraudulent activities that go undetected by existing controls. Hence, it's often found that fraud is perpetrated by individuals who have more access to organizational resources and who can manipulate these controls without drawing attention to their actions.

In summary, internal control systems can be more vulnerable and less effective at higher organizational levels, making the statement true.