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 types 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 there will always be limitations or weaknesses in the system that can potentially be exploited by individuals attempting to commit fraud or other irregularities. It is important for organizations to continually monitor and evaluate their control systems to identify and address any weaknesses that may arise.

Which of the Following Observations Is True