• What Is an Internal Control Deficiency?
An internal control deficiency occurs when an organization fails to implement controls to prevent or
detect risks effectively.
In this case, responding only to maintenance needs when complaints are received demonstrates a
lack of proactive controls, increasing the risk of issues going unnoticed or escalating over time.
• Why Is Option C Correct?
Proactive maintenance schedules and inspections are essential for ensuring the safety and
functionality of critical infrastructure like dams. Relying solely on complaints or employee reports is a
reactive approach and represents a deficiency in internal controls.
• Why Other Options Are Incorrect:
A . Inspecting completed work: This is a proper control to ensure compliance with contract
specifications.
B . Releasing the bond after work completion: This ensures contractual obligations are met and is a
good control practice.
D . Checking bidder
