Explore BrainMass
Share

Internal control amongst management

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Internal control has gained increasing importance among management, external auditors, regulators, and others. Use a specific example that illustrates the answer.

When considering the effectiveness of an internal control structure, what inherent limitations should be considered?

© BrainMass Inc. brainmass.com October 25, 2018, 7:15 am ad1c9bdddf
https://brainmass.com/business/internal-controls/internal-control-management-497265

Solution Preview

Internal control has gained increasing importance because we are now aware of the devastation that can occur when there is a poor internal control structure. When we look at companies like Enron, WorldCom, or others, they all share a common factor - a weak internal control system. For example, the executives at Enron Corporation overrode the internal control system that was in place. By doing so, they were able to authorize changes to accounting transactions ...

Solution Summary

Internal control has gained increasing importance among management, external auditors, regulators, and others. Use a specific example that illustrates the answer.

When considering the effectiveness of an internal control structure, what inherent limitations should be considered?

$2.19
See Also This Related BrainMass Solution

Sarbanes-Oxley requirements

What are the key internal and external factors that need to be considered when designing a control system for organizations and how have control systems been changed by Sarbanes-Oxley requirements?

View Full Posting Details