Definition
Percentage of failed controls.
Context
Control failure rate is a key metric within internal controls and fraud risk assessment. It measures the effectiveness of control mechanisms, such as approvals, reconciliations, or system-based controls, and is often assessed in audits and monitoring processes.
Meaning
Direct indicator of weaknesses in the control environment and potential fraud exposure.
Example
Multiple failed dual controls.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Control Failure Rate", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/control-failure-rate/, accessed April 18, 2026.