Main roadblocks to fraud detection are
A)weak internal controls
B)auditor's lack of understanding of the client's system
C)management override of internal controls
D)lack of separation of duties
E)collusion
F)both A and B
G)both B and D
H)Both C and E

Question

Quizplus · Accepted Answer

Weak internal controls (A) and lack of understanding of the client's system (B) are potential roadblocks to fraud detection, but they can be addressed through improved training and implementation of proper controls. Lack of separation of duties (D) and collusion (E) are also obstacles to fraud detection, but again, there are steps that can be taken to mitigate these risks. Management override of internal controls (C) and collusion (E) pose more significant challenges because they involve intentional circumvention of safeguards. These roadblocks can only be addressed by a strong ethical culture that emphasizes the importance of integrity and internal controls. Therefore, option H is the best choice as it covers both roadblocks that cannot be addressed by mere hardware improvement or internal control implementation, and requires a broader approach to address.

Main Roadblocks to Fraud Detection Are