ABC CPA Essay Example | Topics and Well Written Essays - 500 words

ABC CPA - Essay Example The limitations of internal control system include the aspect that due to the cost effective nature of the control system certain non-effective but useful controls are emitted. The other limitations include the aspect that designing as well as establishing efficient internal controls can be quite a difficult task due to lack of knowledge of staff to operate such systems. Internal control system might not always reflect altered operating conditions (Gupta 100-200). Internal control system has certain procedures which are illustrated by the help of two examples. Firstly, the internal control system should be served with proper Information Technologies (IT). IT helps the auditors to control the account related entries correctly and reduces the risk of wrong or emitted entry. This is because IT assists to store the data correctly and the stored data can be simultaneously cross-checked, consequently allowing to rectify the faults and can recognize the missing entry. This internal control process can be implemented by ABC Company to its auditing department by providing IT related requirements such as computers and through proper mode of communication. Computers will help to store the transactions related to accounts and communication process will assist the auditors to collect all information and documents related to accounts within its premises (Sai, â€Å"Internal Control and Auditing In IT Environment†). The other example of internal control procedures is that handed over duties and liabilities should be familiar and communicated to employee properly by the company’s higher level officials. This procedure helps the management and the subordinates to plan and to work out the strategies sufficiently by which the objective of the specified task can be achieved efficiently. This procedure of internal control can be implemented by ABC Company through