The management of a company has a unique ability to perpetrate fraud because
A)management has authority to develop internal controls
B)management has authority over employees
C)internal controls do not guarantee that a fraud will not occur
D)management often has the ability to override internal controls

Question

Quizplus · Accepted Answer

Management's ability to override internal controls makes them uniquely positioned to perpetrate fraud because they can bypass or manipulate those controls. While internal controls can help prevent and detect fraud, they are not foolproof, and a determined fraudster in a position of authority can find ways to circumvent them.

The Management of a Company Has a Unique Ability to Perpetrate