- 20 Marks
AA – May 2018 – L2 – Q3 – Internal Control Systems
Discusses limitations of internal control systems and issues when small entities rely heavily on senior management.
Question
Internal Control Systems are never foolproof. All systems, no matter how effective they may appear to be, have several limitations.
Required: a. Discuss briefly FOUR limitations of internal control systems in an organization. (8 Marks) b. Explain the problems that may arise when control systems rely excessively on the involvement of senior management in small entities. (12 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Audit Systems, Control Limitations, Internal Control, Management Control, Risk Mitigation
- Level: Level 2
- Topic: Internal Control Systems
- Series: MAY 2018
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