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What is management override

What is management override and do you think that it is an issue that can be easily controlled? Why or why not?

I am including a link to an AICPA publication that discusses management override and what audit committee's can do address the risk. There are also great sections on ethical challenges that management faces.

(http://www.aicpa.org/ForThePublic/AuditCommitteeEffectiveness/DownloadableDocuments/achilles_heel.pdf)

Please note the following sections
These sections highlight ethical challenges management faces:
Page 17 (of the pdf file): Communication with Compensation Committee
Page 17 (of the pdf file): Communication with Key Employees

The following sections list ethical challenges that management faces (in the form of questionnaires):
Page 21 (of the pdf file): Incentive of Pressures on Management
Page 23 (of the pdf file): Opportunities Management can Exploit
Page 25 (of the pdf file): Attitudes or Rationalizations Exhibited by Management

Solution Preview

Management override can be termed as actions/decisions taken by the managers or management which are contrary to the internal control policies of the organization. Managers/management intervene in the handling of financial information by thinking that they have the ability to engage in such violation ...

Solution Summary

What is management override and do you think that it is an issue that can be easily controlled? Why or why not?

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