Human error is a common cause of internal control failure.True false question.TrueFalse
Question
Human error is a common cause of internal control failure.
True / False
Solution
Answer: True
Human error is indeed a common cause of internal control failures. Internal controls are designed to provide reasonable assurance that an organization’s objectives will be achieved in the areas of operations, reporting, and compliance. However, these controls are significantly reliant on human judgment and actions. Factors such as miscommunication, oversight, lack of training, fatigue, and misunderstanding of procedures can lead to errors in judgment and mistakes in execution.
Furthermore, the complexity of procedures and the volume of transactions can overwhelm employees, particularly if they are not adequately trained or if the controls themselves are too complicated. Consistent evaluation and revision of controls, as well as regular training programs, are essential to minimize these human errors and enhance the overall effectiveness of internal controls. Thus, it is accurate to state that human error is a prevalent cause of failure in the internal control system.
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