What are some common internal control failures in organizations?

What are some common internal control failures in organizations?

Common internal control failures include lack of segregation of duties, inadequate documentation, and poor monitoring.

Can you explain why segregation of duties is important?

Segregation of duties helps prevent fraud and errors by ensuring that no single individual has control over all aspects of a transaction.

What can organizations do to improve their internal controls?

Organizations can improve internal controls by conducting regular audits, providing training, and implementing robust policies.

Are there specific examples of companies that faced issues due to internal control failures?

Yes, companies like Enron and Lehman Brothers faced significant issues due to internal control failures, leading to their downfall.