You are an accountant at a local CPA firm that is auditing the accounting
records of ABC Company. You have been asked to educate the accounting department
about the limitations of the internal control system in preparation for an
upcoming audit. During your audit, you have identified that because of a weak
internal control system, an adjusting entry for prepaid insurance was not
recorded for the first 3 months of the year at $500 per month.
Identify the limitations of the internal control system. Provide at least 3
Provide at least 2 examples of internal control procedures, and explain how
these procedures can be implemented.
Identify symptoms of a lack of internal control.
Explain the impact of the missing journal entry on the financial statements
of the company
3-4 Pages APA