It is difficult and costly to plan controls that can prevent collusion.

Question

Quizplus · Accepted Answer

Collusion involves two or more individuals conspiring to commit fraud or other illegal activities, often by bypassing internal controls. Preventing collusion may require implementing complex and costly measures, such as mandatory rotation of duties, background checks, and segregation of duties. Even with these measures in place, collusion can still occur if those involved are determined enough. Therefore, it is true that planning controls to prevent collusion can be difficult and expensive.

It Is Difficult and Costly to Plan Controls That Can