Which of the following is the most serious limitation of internal controls?
A)Computer error
B)Human fraud or human error
C)Cost-benefit principle
D)Cybercrime
E)Management fraud

Question

Quizplus · Accepted Answer

Human fraud or human error is the most serious limitation of internal controls because no matter how strong or effective the controls are, they are ultimately dependent on human beings to manage and operate them. Human beings can intentionally or unintentionally bypass, ignore, or undermine the controls, creating opportunities for fraud or errors to occur. Computer error, cybercrime, cost-benefit principle, and management fraud are also limitations of internal controls, but they are not as significant or pervasive as human fraud or human error.

Which of the Following Is the Most Serious Limitation of Internal