A company may be limited in their internal control procedures because the cost of hiring enough people to implement the procedures:
A)outweighs the benefits of the system.
B)has nothing to do with the effectiveness of the internal control system.
C)can prevent collusion.
D)can limit employee distractions.

Question

Quizplus · Accepted Answer

The cost of implementing an internal control system should be justified by the benefits it provides. If the cost of hiring enough people to implement the procedures outweighs the benefits of the system, then the company may be limited in their internal control procedures. This can result in increased risks and vulnerability to fraud and errors.

A Company May Be Limited in Their Internal Control Procedures