Internal Control Policies and Procedures Have Limitations Not Including

question 62

Multiple Choice

Internal control policies and procedures have limitations not including:

• A)Human error.
• B)Human fraud.
• C)Cost-benefit principle.
• D)Collusion.
• E)Establishing responsibilities.

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Definitions:

Statement of Dissolution

A document filed to officially dissolve a business entity, such as a partnership or corporation.

Dissociation

The process by which a member's involvement in a partnership or an LLC is ended, altering the entity's structure or membership.

Withdrawal

The act of removing something from a place of deposit or the act of stopping participation in an activity or agreement.

Wrongful Dissociation

The inappropriate withdrawal of a partner from a partnership, which can lead to damages against the departing partner for breach of the partnership agreement.