Which of the following statements is not true?
AManagement fraud is more difficult to detect than employee fraud
BThe auditor’s responsibility for detection and prevention of errors and frauds is similar.
CInternal control system reduces the possibility of occurrence of employee fraud and management fraud
DAll statements are correct.
Correct answer
C. Internal control system reduces the possibility of occurrence of employee fraud and management fraud
Explanation
Internal control system reduces the possibility of occurrence of employee fraud and management fraud is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.