Which of the following statements about accounting systems is incorrect?
A)An effective accounting system provides an audit trail that allows frauds to be discovered.
B)An effective accounting system makes concealment difficult.
C)An effective accounting system can effectively prevent "kickbacks."
D)Without a good accounting system, it is often difficult to distinguish between actual fraud and unintentional error.

Question

Quizplus · Accepted Answer

An effective accounting system may help detect or deter fraud, but it cannot completely prevent "kickbacks," which are often related to unethical practices outside the scope of accounting controls.

Which of the Following Statements About Accounting Systems Is Incorrect