Question
In: Operations Management
What would be the disadvantages, potential weaknesses and costs of internal controls?
What would be the disadvantages, potential weaknesses and costs of internal controls?
Solutions
Expert Solution
Internal control means controlling the cost of company internally or doing auditing of the company’s work internally. This has few limitations as well:-
- Time consuming
Controlling the work internally will increase the cost of labor and company need to hire more people in the company to perform activity. Which will result in delay in the work and client will receive the final product late.
- Human error
A person involved in a control system could simply make a mistake, perhaps forgetting to use a control step. That way the plan of controlling the things get failed and that will harm the performance of the company.
- Difficulty in understanding
Some times it may happen that the people will face issue with the controlling the thing because they are not able to understand the same. The issue could because people to whom the responsibility is given are not able to understand the role they have to play.
- May increase the frustration in the employees
No one like the auditing of his/her work. So employees may get frustrated with the same and may plan to leave the jobs which will harm the performance of the company.
These are few disadvantages of the Internal control which every company will have to face.
keosha answered 1 year agoRelated Solutions
Assess the strengths of the WorldCom’s internal controls during their fraud scandal. Where are the weaknesses...
What are good internal controls?
identify what type of internal controls would ensure proper classification of cash equivalents
Briefly describe the purpose of internal controls in a company and the importance of internal controls...
What are the four ways to test internal Controls?
Defining internal control Internal controls
Identify and explain how internal controls for e-commerce would be implemented and how it would then...
What are “internal controls”? Who establishes the controls? What role does management play in the creation...
What are “internal controls”? Who establishes the controls? What role does management play in the creation...
Proposes potential improvements to internal communications and justifies those improvements based upon identified weaknesses or opportunities...
- Use the bond term's below to answer the question Maturity 7 years Coupon Rate 4% Face...
- What experience have you had with Organization Development or with Change Management? Describe the organization, the...
- 1. Renfro Rentals has issued bonds that have a 12% coupon rate, payable semiannually. The bonds...
- Given an array of positive integers a, your task is to calculate the sum of every...
- Define “culture.” Software is defined by the Merriam-Webster Dictionary as "the programs that run on a...
- In humans, hypotrichosis (sparse body hair) is a rare autosomal recessive condition. Let h = hypotrichosis...
- Increase all of the listing prices by 5% for all listings under $500,000 and 10% for...