Limitations
Internal control can provide reasonable, not absolute, assurance that the objectives of an organization will be met. The concept of reasonable assurance implies a high degree of assurance, constrained by the costs and benefits of establishing incremental control procedures.
Effective internal control implies the organization generates reliable financial reporting and substantially complies with the laws and regulations that apply to it. However, whether an organization achieves operational and strategic objectives may depend on factors outside the enterprise, such as competition or technological innovation. These factors are outside the scope of internal control; therefore, effective internal control provides only timely information or feedback on progress towards the achievement of operational and strategic objectives, but cannot guarantee their achievement.
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Famous quotes containing the word limitations:
“No man could bring himself to reveal his true character, and, above all, his true limitations as a citizen and a Christian, his true meannesses, his true imbecilities, to his friends, or even to his wife. Honest autobiography is therefore a contradiction in terms: the moment a man considers himself, even in petto, he tries to gild and fresco himself.”
—H.L. (Henry Lewis)
“... art transcends its limitations only by staying within them.”
—Flannery O’Connor (1925–1964)
“The only rules comedy can tolerate are those of taste, and the only limitations those of libel.”
—James Thurber (1894–1961)