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melanie and peter are discussing the limitations of internal control systems in organizations -

Melanie and peter are discussing the limitations of internal control systems in organizations

Question: Melanie and Peter are discussing the limitations of internal control systems in organizations. Melanie believes that the human element is an insignificant factor in internal control systems. If Peter wants to refute this view, which of the following points should he put forth?

Collusion between two individuals can eliminate the protection offered by segregation of duties in an internal control system.

The size of an organization determines the expectations from an internal control system in the organization.

Small companies have more efficient internal control systems as they do not need to segregate duties or provide for independent internal verification.

A well-built internal control system has inbuilt controls to reverse the results of employee indifference and carelessness.

 

 

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