Which example is associated with management override of controls?

The example associated with management override of controls is inappropriate revenue recognition. This occurs when management intentionally misclassifies or recognizes revenue in a manner that does not comply with established accounting principles or internal controls. Management override of controls can undermine the effectiveness of internal control systems, as it allows individuals in positions of authority to bypass or manipulate those controls for their benefit, which can result in financial statements that do not depict a true and fair view of the company's financial position.

Inappropriate revenue recognition is particularly concerning because it can significantly impact the perceived financial performance of a company. When management exercises override, they may recognize revenue prematurely or manipulate timing to create favorable financial results. This manipulation can mislead stakeholders and investors, resulting in serious implications for the company’s reputation and financial health.

Timely financial reporting, consistent application of accounting policies, and accurate journal entries represent best practices in compliance with internal controls and accounting standards, rather than instances of control being overridden. These practices contribute to the integrity of financial reporting and minimize the risk of errors and misstatements.