Which of the following is the best reason for management to emphasize fraud prevention and deterrence?
A) collusion and false documentation make fraud detection difficult to detect
B) collusion is impossible to detect
C) false Documentation is impossible to detect
D) all of the above are equally valid reasons

Question

Quizplus · Accepted Answer

Collusion and false documentation can create an environment where fraud can occur undetected for long periods of time. Emphasizing fraud prevention and deterrence can make it harder for individuals to engage in fraudulent behavior, which can reduce the likelihood of fraud occurring in the first place. While options B and C state that collusion and false documentation cannot be detected, they are not accurate as there are ways to uncover these types of fraud, such as through controls that separate duties or require corroborating evidence.

Which of the Following Is the Best Reason for Management