Under an effective system of internal control,errors occur only as a result of fraud or dishonesty.

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Even with an effective system of internal control, errors may still occur due to human mistakes, misinterpretation of data, or miscommunication. Internal control aims to reduce the risk of such errors from occurring but does not guarantee 100% prevention. Fraud and dishonesty are some of the other reasons for errors, which an effective internal control system aims to detect and prevent.

Under an Effective System of Internal Control,errors Occur Only as a Result