If a system of internal controls is too strict or complex,it may harm efficiency and not be cost-effective.

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Quizplus · Accepted Answer

It is true that if a system of internal controls is excessively strict or complex, it can harm efficiency and may not be cost-effective. This is because employees may spend an unnecessary amount of time and resources trying to comply with the controls, which can lead to delays and inefficiencies in the overall operations of the organization. Additionally, implementing overly complex controls can increase the administrative burden and associated costs. Therefore, it is important to strike a balance between implementing effective controls and maintaining operational efficiency and cost-effectiveness.

If a System of Internal Controls Is Too Strict or Complex,it