Which of the following is required by organizations to reduce the likelihood of criminal conduct?

Internal control procedures are essential for organizations to mitigate the risk of criminal conduct. These procedures involve systematic measures implemented within an organization to ensure compliance with laws and regulations, safeguard assets, enhance the accuracy of accounting records, and promote operational efficiency. By establishing a robust internal control framework, organizations can monitor activities, identify any deviations from established protocols, and take corrective actions before any potential misconduct escalates.

These procedures serve as a foundational element in fostering an ethical culture within the organization, as they help in promoting accountability and transparency. This proactive stance significantly reduces opportunities for unethical behavior, allowing for the timely detection and prevention of criminal activities.

The other options do not effectively fulfill this role in the same way. For instance, a complex personal hierarchy might introduce ambiguity and hinder clear communication, potentially creating environments where misconduct can thrive. Auditing external practices can be beneficial, but it primarily focuses on reviewing operations rather than putting preventive measures in place. Minimal supervision inversely increases the risk of misconduct by removing oversight, making it easier for unethical actions to go unnoticed. Thus, internal control procedures stand out as the most critical requirement for reducing the likelihood of criminal conduct in organizations.