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Limitations of effective internal control procedures

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A significant component of an audit program is the examination of the organization's internal control procedures and if they are being followed. However, there are a few limitations to this review of internal controls. A few of the limitations are listed below. What has your experience been, or what have you read, about why these limitations exist?

Entity Size
Management overrides
Collusion

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This solution helps go through the limitations of effective internal control procedures within the context of auditing.

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The size of the organization is a limitation to the review of internal controls because the size and the complexity of the organization determine the scale of the internal control assessment. A large organization may require a large scale assessment and have a large amount of internal controls that have to be assessed. While a very small company may have as little as one person over ...

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