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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?

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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 ...

    Solution Summary

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

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