Discuss three behavioral issues that should be considered when implementing an internal control plan

What will be an ideal response?

Answer: Suggested answer:

Students may mention:
• Internal controls may conflict with productivity. For example, an employee may omit a control in the interest of productivity.
• Segregation of duties assumes that employees will not collude with each other.
• Many controls are based on the assumption that employees will report irregularities committed by other employees.
• The position/power of an individual in the organization who commits an irregularity may influence whether or not the irregularity gets reported.
• Informal pressures, such as peer pressure, may lead to an irregularity not being reported.