Internal control policies and procedures have limitations including:
A) Human error.
B) Human fraud.
C) Cost-benefit principle.
D) Collusion.
E) All of these.

Question

Quizplus · Accepted Answer

Internal control policies and procedures can only be designed to provide reasonable assurance, not absolute assurance due to their inherent limitations. These limitations include human error and fraud, the cost-benefit principle, and collusion between individuals. Therefore, all of these choices are correct.

Internal Control Policies and Procedures Have Limitations Including