State the reason of a system of internal control not able to overcome collusion by employees.

Question

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Answer 1

Question

Chapter 8, Problem 1DQ

To determine

State the reason of a system of internal control not able to overcome collusion by employees.

Expert Solution & Answer

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Reason of a system of internal control not able to overcome collusion by employees:

No system of internal control is without weaknesses. As long as people perform control procedures, an internal control system will be vulnerable to human error.
Errors can arise from misunderstanding, mistakes, in judgment, carelessness, distractions, or fatigue.
Separation of duties can be defeated through collusion by employee who secretly agrees to deceive a company.
Established Procedure may be ineffective against employee's errors or dishonesty.
With the change in conditions, Internal Control may become Ineffective.

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Answer 2

Question

Chapter 8, Problem 1DQ

To determine

State the reason of a system of internal control not able to overcome collusion by employees.

Expert Solution & Answer

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Reason of a system of internal control not able to overcome collusion by employees:

No system of internal control is without weaknesses. As long as people perform control procedures, an internal control system will be vulnerable to human error.
Errors can arise from misunderstanding, mistakes, in judgment, carelessness, distractions, or fatigue.
Separation of duties can be defeated through collusion by employee who secretly agrees to deceive a company.
Established Procedure may be ineffective against employee's errors or dishonesty.
With the change in conditions, Internal Control may become Ineffective.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1DQ

To determine

State the reason of a system of internal control not able to overcome collusion by employees.

Expert Solution & Answer

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Reason of a system of internal control not able to overcome collusion by employees:

No system of internal control is without weaknesses. As long as people perform control procedures, an internal control system will be vulnerable to human error.
Errors can arise from misunderstanding, mistakes, in judgment, carelessness, distractions, or fatigue.
Separation of duties can be defeated through collusion by employee who secretly agrees to deceive a company.
Established Procedure may be ineffective against employee's errors or dishonesty.
With the change in conditions, Internal Control may become Ineffective.

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Answer 4

Question

Chapter 8, Problem 1DQ

To determine

State the reason of a system of internal control not able to overcome collusion by employees.

Expert Solution & Answer

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Reason of a system of internal control not able to overcome collusion by employees:

No system of internal control is without weaknesses. As long as people perform control procedures, an internal control system will be vulnerable to human error.
Errors can arise from misunderstanding, mistakes, in judgment, carelessness, distractions, or fatigue.
Separation of duties can be defeated through collusion by employee who secretly agrees to deceive a company.
Established Procedure may be ineffective against employee's errors or dishonesty.
With the change in conditions, Internal Control may become Ineffective.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1DQ

To determine

State the reason of a system of internal control not able to overcome collusion by employees.

Expert Solution & Answer

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Reason of a system of internal control not able to overcome collusion by employees:

No system of internal control is without weaknesses. As long as people perform control procedures, an internal control system will be vulnerable to human error.
Errors can arise from misunderstanding, mistakes, in judgment, carelessness, distractions, or fatigue.
Separation of duties can be defeated through collusion by employee who secretly agrees to deceive a company.
Established Procedure may be ineffective against employee's errors or dishonesty.
With the change in conditions, Internal Control may become Ineffective.

Answer 6

Chapter 8, Problem 1DQ

To determine

State the reason of a system of internal control not able to overcome collusion by employees.

Expert Solution & Answer

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Reason of a system of internal control not able to overcome collusion by employees:

No system of internal control is without weaknesses. As long as people perform control procedures, an internal control system will be vulnerable to human error.
Errors can arise from misunderstanding, mistakes, in judgment, carelessness, distractions, or fatigue.
Separation of duties can be defeated through collusion by employee who secretly agrees to deceive a company.
Established Procedure may be ineffective against employee's errors or dishonesty.
With the change in conditions, Internal Control may become Ineffective.

Answer 7

Chapter 8, Problem 1DQ

To determine

State the reason of a system of internal control not able to overcome collusion by employees.

Answer 8

Expert Solution & Answer

Explanation of Solution

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Reason of a system of internal control not able to overcome collusion by employees:

No system of internal control is without weaknesses. As long as people perform control procedures, an internal control system will be vulnerable to human error.
Errors can arise from misunderstanding, mistakes, in judgment, carelessness, distractions, or fatigue.
Separation of duties can be defeated through collusion by employee who secretly agrees to deceive a company.
Established Procedure may be ineffective against employee's errors or dishonesty.
With the change in conditions, Internal Control may become Ineffective.