• Most internal controls tend to be directed at routine transactions rather than non- routine transactions.
• The possibility of circumvention at internal controls through the collusion of a member of management or an employee with parties outside the entity.
• There‘s also possibility of a person responsible for exercising an internal control could abuse that responsibility e.g. management.
• There is the possibility that procedures that constitute an internal control system may become inadequate due to changes in conditions, and compliance with procedures may also deteriorate.
• Lack of management support for the control systems due to their requirement that the cost of an internal control does not exceed the expected benefits to be derived.
• There is potential for human error due to carelessness, distraction, mistake of judgement and the misunderstanding of instructions.
