accounting 2 -...

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Identify the limitations of the internal control system. Provide at least 2 limitations.  As we know that, developing internal control is very expensive and time consuming.  Internal control has some limitations for instance there is complication of some. The  saying is that "it can strangle the business with red tape." If the internal control of any  business is rigid then it will create many problems for the business. It would be  company’s management responsibility to conclude which risks and controls are worth  the costs and benefits. If the expenses of the business are 50 dollars, is it worthwhile to  examine and the possibility of government authorities becoming involved. If the internal  control system is more lenient then there would be more frauds take place. However,  many problem would arise if internal controls are too rigid and strict. Provide at least 3 examples of internal control procedures, and explain how these 
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This note was uploaded on 10/06/2011 for the course ENGLISH 102 taught by Professor Hopkin during the Spring '10 term at Abraham Baldwin Agricultural College.

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accounting 2 -...

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