IFRS and fraud prevention

Question

Will adoption of IFRS increase the possibility or frauds in Accounting?

Answer 1

It depends. Since IFRS is principle-based as apposed to rule-based such as US GAAP, some may argue that there may be more room  for creative accounting practices. However even rule based standards like US GAAP have never been able to rule out the possibility of accounting scandals. Eg. Enron, Tyco, Worldcom,etc. On the other hand principles may make the IFRS stronger in fraud prevention as evasion of a principle may be more difficult to justify.

Answer 2

I too accept that principle based standards are more appropriate in fraud prevention.