Properly designed management control systems will eliminate fraudulent behavior by maximizing goal congruence within the organization.

Question

Quizplus · Accepted Answer

While properly designed management control systems can certainly help reduce fraudulent behavior by aligning the goals of employees with those of the organization, it is impossible to completely eliminate fraud. Fraudsters can still find ways to circumvent controls or engage in deceptive behavior, so it is important to have ongoing monitoring and investigation processes in place to detect and deter fraud.

Properly Designed Management Control Systems Will Eliminate Fraudulent Behavior by Maximizing