Management override of controls
Management override occurs when management bypasses controls that otherwise operate effectively, potentially enabling fraudulent reporting or concealment. Auditors consider the risk and perform required responses, including work on journal entries and management bias where applicable.
Worked example
A senior officer posts an unsupported year-end journal that bypasses the usual approval workflow.
Common mistake
Do not conclude override risk is absent merely because normal transaction controls are well designed.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AAA (INT) | Direct | September 2026–June 2027 |