Management can expect various benefits to follow from implementing a system of strong internal control. Which of the following benefits is least likely to occur?
A) Reduced cost of an external audit.
B) Preventing employee collusion to commit fraud.
C) Availability of reliable data for decision-making purposes.
D) Some assurance of compliance with the Foreign Corrupt Practices Act of 1977.
E) Some assurance that important documents and records are protected.

Question

Quizplus · Accepted Answer

Strong internal controls can deter fraud but cannot completely prevent employee collusion, as collusion involves multiple individuals working together to bypass controls.

Management Can Expect Various Benefits to Follow from Implementing a System