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

Question

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

Students have asked these similar questions

Can you solve this general accounting question with accurate accounting calculations?

Can you explain the process for solving this general accounting question accurately?

Can you provide the accurate answer to this financial accounting question using correct methods?

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.

Want to see more full solutions like this?

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.

Want to see more full solutions like this?

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

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.

Want to see more full solutions like this?

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.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 8 - Prob. 1DQ Ch. 8 - Prob. 6EA Ch. 8 - Prob. 7EA Ch. 8 - Prob. 4P

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

Concept explainers

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

Explanation of Solution

Want to see more full solutions like this?

Chapter 8 Solutions