Internal Control Limitations
2.9 Limitations of Internal Control:
An organizational system of internal control is designed to provide reasonable assurance that assets can adequately safeguard and that the accounting records are reliable. Internal control can do much to protect against both errors and irregularities, and it also ensures that accounting data is consistent. It is vital to recognize the actuality of inherent limitations in any internal control structure. Mistakes may result in the performance of internal control policies and procedures as an outcome of the misunderstanding of instructions, errors in judgment, carelessness, distractions, or fatigue. The size of the organization made impose limitations on internal control. In small firms, for example, it may
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Also, the dimensions of information quality, consist of relevant, timeliness, accuracy, completeness and summarizing. The quality of the financial reporting also measured by a system of indicators that qualify (Conceptual Framework) for Financial Reporting (from now on Conceptual Framework) as the qualitative characteristics of useful financial information and NAS1 as the qualitative characteristics of financial reporting. The primary objective of financial reporting is to provide high-quality financial reports information concerning financial entities, primarily commercial in nature, useful for economic decision making (FASB, 1999; IASB, …show more content…
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