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What are the limitations of the COSO internal control framework?

There are six major limitations of internal control that has been identified by The Committee of Sponsoring Organizations (COSO). These limitations include:

Human judgement – Human judgement can be defective and can also become subject to bias.

Errors – Breakdowns and failures occur as long as people are those who are operating internal control systems, this can include basic errors.

Override of internal controls – Management is capable of overriding internal controls.

Collusion –Management or other personnel can avoid or skip internal controls and can partake in collusion.

External events – External events are can cause incidents that are beyond management’s control.

Objectives for controls – These must be suitable as a precondition to internal control (unrealistic or improbable objectives can be set that internal controls can’t fully address).


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