The most serious limitation of internal controls is
A)internal controls frequently cost more than the benefit derived
B)there is no causal relationship between good internal controls and good financial statements
C)internal control testing requires a skill set that is costly
D)internal controls have limited use in automated systems

Question

Quizplus · Accepted Answer

While internal controls are essential for maintaining accurate financial statements, there is no guarantee that good internal controls will always result in good financial statements. Fraud or errors can still occur even with strong internal controls in place. Therefore, there is no causal relationship between good internal controls and good financial statements, making it the most serious limitation of internal controls.

The Most Serious Limitation of Internal Controls Is