lunes, 2 de agosto de 2010

Control Precision and Consequences of Poor Internal Control

Precision is distinct from sufficiency; that is, multiple controls with varying degrees of precision may be involved in achieving a control objective or mitigating a risk.

    Some results of poor internal controls include:
  • Theft and fraud.  
  • Wrong decisions made.
  • Action not taken in time to correct problems.
  • Poor decisions taken for the business.
  • Lack of resources allocated to correct any business situation.

 

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