Final answer:
A good internal control system within a company can help reduce the risk of fraud, but it cannot ensure the absence of fraud.
Step-by-step explanation:
A good internal control system within a company can certainly help reduce the risk of fraud, but it cannot ensure the absence of fraud. Fraud can still occur even with a well-designed internal control system in place.
Internal control measures are processes put in place by a company to safeguard its assets, ensure accurate financial reporting, and promote operational efficiency. These measures include segregation of duties, regular monitoring and reconciliation of accounts, and implementing checks and balances.
While internal controls can greatly minimize the opportunities for fraud, they are not foolproof. There are cases where employees manage to bypass or manipulate the control systems to commit fraudulent activities. Therefore, a company needs to have internal controls as well as other preventive measures, such as a strong ethical culture and regular audits, to detect and deter fraud.