Hi sir, I'm slightly confused over the limitation below. Could you check if my understanding is correct.
- Control processes being intentionally circumvented by employees and others
This basically means the employees totally avoid the controls for their own reasons.
Example: A company tracks employee attendance by clocking in cards. Some employees may ask their friends to clock in on behalf of them even when they are not present.
Am I right ?
Ask the Tutor ACCA SBL
Limitations fo internal control systems
then what is the difference between the above limitation and the following ?
Management overriding controls probably in the belief that the controls put in place are inconvenient or inappropriate and should therefore, not apply to them.
7y ago#2There is not much difference. It is motive, really. Management over-ride tends to be for good reasons, eg to order purchases quickly to keep production going, but without checking which supplier charges least.
Thank you sir.
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