Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Inherent Limitation of internal control
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- August 16, 2012 at 3:09 pm #54016
Dear Gromit,
1- I have a trouble with this question and need you to help me to clarify the inherent limitation of internal control“The internal auditor recognizes that certain limitations are inherent in any system of internal controls. Which one of the scenarios is the result of an inherent limitation of internal control?
A- The contrompller both makes and records cash deposits
B- The security guard allows one of the warehouse employees to remove assets from the premises without authorization
C- The organization sells to customers on account, without credit approval
D- An employee who is unable to read is assigned custody of the organization’s computer tape library and run manuals that are used during the third shift”2- Regarding to some materials of internal control, the phrase “avoidable control weaknesses” is used, what is avoidable control weakness?
Thanks a lot
August 20, 2012 at 6:30 pm #1040421 An inherent control weakness is one that might occur even if the IC system were perfectly designed.
So, the answer is B. This is an problem caused by human error/bypassing/collusion.
A can be fixed
C can be fixed
D can be fixedNothing can stop the possibility of an inadequate guard not following rules.
2 I don’t know the phrase as a standard one. All I can assume is that it refers to options A, C, D above: all are avoidable with more thought and planning.
HTH
August 20, 2012 at 11:48 pm #104043I got it. Thanks Gromit!
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