Which of the following observations is true?
A)The effectiveness of an ideal control system should be independent of the people enforcing it.
B)No internal control structure can ever be completely effective, regardless of the care followed in its design and implementation.
C)A control system by itself can provide assurance that fraud will be prevented.
D)The type of control activities include reactive controls and proactive controls.

Question

Quizplus · Accepted Answer

No internal control structure can ever be completely effective, regardless of the care followed in its design and implementation. This is because internal control systems are designed and implemented by humans who can make errors or be subject to collusion, override or even intentional circumvention. Even the best-designed control system can fail due to unforeseen circumstances or intentional efforts to circumvent the system. Therefore, while internal control systems can help reduce risk, they cannot completely eliminate it.

Which of the Following Observations Is True