Answer to Question #68271 in Accounting for Ronald

Question

Im doing a presentation on Bernard Madoof and the ponzi sceme, and im stuck on making one of the slides for my power point, the question is "Explain the breakdown in or lack of internal control
(control activities)
Thank you.

Answer 1

The breakdown in or lack of internal control (control activities) affects the following aspects:
- Effectiveness and Efficiency (loss cost control resources);
- Financial Reliability (probability of fraud);
- Compliance (violation of the laws or regulations can result in heavy fines, lawsuits or criminal liability).