A weak system of internal ______ provides the ______ to commit fraud.
A) controls; opportunity
B) audits; rationalization
C) financial statements; opportunity
D) loan covenants; incentive

Question

Quizplus · Accepted Answer

Weak internal controls provide the opportunity for fraud to be committed. Audits may help detect fraud, but they do not provide the opportunity for it. Financial statements are a result of a company's financial transactions and not a factor that can enable fraud. Loan covenants provide incentives for companies to meet certain financial targets but do not directly enable fraud.

A Weak System of Internal ______ Provides the ______ to Commit

A Weak System of Internal Provides the to Commit