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Internal controls are meant to keep an honest person honest.

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Controls are meant to keep an honest person honest? What do you think about that statement? Do you agree? Why or why not?

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Solution Summary

This 399 word solution fully explains the internal control issue complete with examples.

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The statement that controls are meant to keep honest people honest can certainly seem that way to many of the employees because control procedures can involve extra actions that seem redundant and useless.

From the management view, control systems involve extra costs to
1. Design the systems
2. Pay for employee time to comply with systems
3. Hire extra employees to monitor the systems
4. Pay the auditors to test the systems
5. Pay the auditors to report on the systems

From the employee side, the controls seem to be
1. A waste of time
2. Redundant and ...

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