Limitations of internal control include
A) Human error
B) Human fraud
C) Cost-benefit standard
D) Human error and fraud
E) All of the above

Question

Quizplus · Accepted Answer

All of the above are limitations of internal control. Human error and fraud are obvious limitations, but even when controls are effective, there are still residual risks that cannot be completely eliminated. Additionally, implementing stronger controls may not be cost-effective and may require significant resources that outweigh the benefits gained.

Limitations of Internal Control Include