Explain why collusion between employees and management in the commission of a fraud is difficult to both prevent and detect.
What will be an ideal response?
Collusion among employees in the commission of a fraud is difficult to both prevent and detect. This is particularly true when the collusion is between managers and their subordinate employees. Management plays a key role in the internal control structure of an organization. They are relied upon to prevent and detect fraud among their subordinates. When they participate in fraud with the employees over whom they are supposed to provide oversight, the organization's control structure is weakened, or completely circumvented, and the company becomes more vulnerable to losses.
You might also like to view...
If bonds are sold for a discount, the carrying value of the bonds is equal to the face value less the unamortized discount
Indicate whether the statement is true or false
Which of the following is true about the Paris Convention of 1883?
A) It allows an applicant from one member nation to apply for a trademark in another member nation even if the applicant does not own the mark in the applicant's home nation. B) It grants automatic patent protection in all member nations once a patent is granted in one member nation. C) It grants automatic trademark protection in all member nations once a trademark is granted in one member nation. D) The requirement to mark copyrighted works with a is eliminated. E) Both A and B are true.
A deed is proof of:
A) Buildings that are on the property. B) Value of property. C) Size of property. D) Transfer of property. E) Ownership of property.
In product-based tailored sourcing, low-volume products with uncertain demand are obtained from a flexible source, while high-volume products with less demand uncertainty are obtained from an efficient source
Indicate whether the statement is true or false.