WHAT ARE THE LIMITATIONS TO INTERNAL CONTROL EFFECTIVENESS?


LIMITATIONS TO INTERNAL CONTROL EFFECTIVENESS


The  effectiveness  of  internal  control  may  be  limited  due  to  a  number  of  factors  in  the organisation, including:

1.   Weakness in preconditions to internal control effectiveness (e.g. weak board members, audit committee, and problems in strategic planning).






WHAT ARE THE LIMITATIONS TO INTERNAL CONTROL EFFECTIVENESS?





2.   Perception of high cost in maintaining controls.


3.   Management override of established procedures.


4.   Collusion among staff hence preventing internal check.


      5.   Control breakdown due to errors, carelessness, distraction etc.

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