The internal controls at Tembisa Hospital failed because the people responsible for implementing them used the opportunity to enrich themselves. According to Learning Unit 5, which inherent limitation of internal controls and auditing does this reflect?

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That internal controls are too expensive for government institutions to maintain effectively.

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That internal controls are the sole responsibility of the external auditor to design and monitor.

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That when the people responsible for implementing controls are themselves dishonest or colluding, even well-designed controls can be overridden.

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That internal controls can only work if computer systems are used; manual controls always fail.

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That international auditing standards do not apply to South African government hospitals.

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The internal controls at Tembisa Hospital failed because the people responsible ...

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