A system of internal control
A) can never fail.
B) can be ineffective if employees collude.
C) will have costs exceeding benefits.
D) is based on the concept of absolute assurance.

Question

Quizplus · Accepted Answer

Internal controls can become ineffective if employees collude to circumvent them. Collusion among employees can allow them to bypass checks and balances designed to prevent fraud or errors, undermining the effectiveness of the system.

A System of Internal Control