Final answer:
The least likely benefit to follow from implementing a system of strong internal control is preventing employee collusion to commit fraud. Other benefits like reliable data, compliance with legal acts, and protected records are more directly achievable.
Step-by-step explanation:
The benefits of implementing a strong system of internal control within an organization. Out of the benefits listed, the one that is least likely to occur is preventing employee collusion to commit fraud. While a vigorous internal control system can minimize risk and fraud, when multiple employees work together (collude), they might find ways to bypass the controls. Reduced external audit costs, reliable data for decision-making, compliance with legal acts like the Foreign Corrupt Practices Act, and protection of important records are more directly achieved by internal control systems.
Moreover, internal controls act as a first line of defense in preventing and detecting errors or fraud within a company. They provide mechanisms for reliable financial reporting, compliance with laws and regulations, and an effective and efficient operation. The availability of reliable data aids in informed decision-making, while certain controls ensure compliance with legal requirements such as the Foreign Corrupt Practices Act. The implementation of minimum security measures such as fire sprinkler systems similarly aims at protecting assets and reducing risks which can be related to the concept of moral hazard. Therefore, while internal controls are comprehensive, collusion remains a challenging issue to address solely through these measures.