Internal controls in large and medium sized entitican only provide an entity with reasonable assurance in achieving its financial reporting objectives. Which of the following is not an inherent limitation of internal control?
A) human error that results in a breakdown in internal control
B) collusion by two or more individuals to circumvent a control
C) a control within a software program being overridden or disabled
D) changing audit risk parameters

Question

Quizplus · Accepted Answer

Changing audit risk parameters is not an inherent limitation of internal control, but rather a decision made by auditors. The other options are all examples of inherent limitations, as they involve the possibility of human error, collusion, or technology failures that may prevent internal controls from achieving their intended effectiveness.

Internal Controls in Large and Medium Sized Entitican Only Provide