A well-designed system of internal controls will eliminate employee theft and fraud in a company.

Question

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While a well-designed system of internal controls can certainly help to deter and detect employee theft and fraud, it cannot completely eliminate the risk. Employees may still find ways to circumvent the controls or find new fraud schemes that have not been anticipated. Additionally, even the most well-designed system can be undermined by collusion or involvement from senior management or outside parties. Therefore, it is important for companies to have strong internal controls and also to have other mechanisms in place, such as employee training, whistleblower hotlines, and regular audits to monitor for signs of fraud.

A Well-Designed System of Internal Controls Will Eliminate Employee Theft