Which of the following is not an inherent limitation of internal controls?
A) Management overriding a control
B) Misunderstanding of instructions
C) Collusion by employees
D) Inappropriate assessment of the effectiveness of internal controls

Question

Quizplus · Accepted Answer

Inappropriate assessment of the effectiveness of internal controls is not an inherent limitation of internal controls. It is a potential limitation that can occur due to the human element involved in assessing the effectiveness of internal controls. The other options listed (management overriding a control, misunderstanding of instructions, collusion by employees) are inherent limitations that can occur even with effective internal controls in place.

Which of the Following Is Not an Inherent Limitation of Internal