Acct Ip2

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Internal Controls
Latosha Bonita James
American InterContinental University

This paper will explain the accounting department and limitations of the internal control system. The internal control system and adjusting entry for 3 months at $500 per month. After reading this essay one will learn 3 limitation and 2 examples of internal control procedures. Along with the symptoms of lack of internal control and the impact of a missing journal on the financial statements.

Internal Controls
Internal control system limitations, staff size limitations maybe obstruct efforts to properly segregate duties. This requires the implementation of compensating controls to ensure that objectives are achieved. Employees should be encouraged to take earned vacation time in order to improve operations through cross training while enabling employees to overcome stress and fatigue.
The cost of implementing a specific control should not exceed the expected benefit of the control. This is no out of pocket cost to establish an adequate control. In analyzing the pertinent costs and benefits managers also need to consider the possible ramifications and attempt to identify and weigh the intangible as well as the tangible consequences. Separation of duties is another internal control limitation. Segregation of duties reduces the likelihood of errors and irregularities (Editorial Board, 2012). One person is not to have the responsibility for more than one of the three transactions.
When it comes to authorization, custody, and record keeping the work of one employee is checked by another. The responsibility for custody for assets is separate from the responsibility for containing the records related to those assets; there is appropriate segregation of duties. This will help detect errors in a timely manner and…...

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