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Consequences of implementing excessive Internal Control (IC)

User Inese
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Final answer:

Excessive Internal Control can result in increased costs, reduced operational efficiency, and a bureaucratic environment.

Step-by-step explanation:

Implementing excessive Internal Control (IC) can have several consequences for a business. Firstly, it can lead to increased costs as companies may need to invest in additional resources and staff to implement and maintain the control measures. Secondly, excessive IC can also result in a reduction in operational efficiency and productivity, as employees may spend more time on compliance tasks rather than core business activities. Lastly, it can create a bureaucratic environment, where decision-making processes are slowed down and flexibility is limited.

User Tomer Vromen
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