Which of the following observations is true?
A)The effectiveness of an ideal control system should be independent of the people enforcing it.
B)No internal control structure can ever be completely effective,regardless of the care followed in its design and implementation.
C)A control system by itself can provide absolute assurance that all fraud will be prevented.
D)The type of control activities include reactive controls and proactive controls.

Question

Quizplus · Accepted Answer

While internal controls can greatly reduce the risk of fraud and errors, they cannot guarantee absolute prevention. There is always a possibility of an individual finding a way to bypass or circumvent the control measures in place.

Which of the Following Observations Is True