Discuss the limitations of Internal Control. Why are internal controls not a guarantee that all is...
Discuss the limitations of Internal Control. Why are internal controls not a guarantee that all is above board? Put this concept in the context of your current work environment or one in which you have previously worked. What does this look like in your world?
Homework Answers
Internal control only focused and concentrated on the aspects of the firm or company. The success or failure of internal control is confined to the people who framed those. If the people are narrow minded, less experienced and poor in knowledge and experiences, then definitely those controls are going to be failed.
The main limitations of internal controls are:
- over ride of management people
- employees may not work cooperatively
- leads to higher discrimination among workers
- people driven tasks than policy driven
- bias in decision making
all these are few limitations of internal controls and a well diversified board only can solutions to these kind of problems.
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Discuss the limitations of Internal Control. Why are internal
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