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 almost always 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 can help detect and deter fraud, but it cannot completely prevent "kickbacks" or bribery schemes that involve collusion between two or more individuals. Such schemes may involve the submission of false or inflated invoices, which bypass normal internal controls and result in payments to the fraudulent party.

Which of the Following Statements About Accounting Systems Is Incorrect