What are the limitations of internal controls?

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1075455

2026-07-20 23:00

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Internal controls are designed to prevent errors and fraud, but they have limitations. They may not detect all irregularities, especially if collusion occurs among employees. Additionally, controls can be circumvented by management override or may become ineffective if not regularly updated to adapt to changing risks. Furthermore, the cost of implementing and maintaining robust controls can sometimes outweigh their benefits.

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