Common Inherent Limitations in Internal Control Include ________

question 3

Multiple Choice

Common inherent limitations in internal control include ________.

• A)ineffective understanding of the purpose of a control
• B)controls within a software system are never overridden
• C)no evidence or history of collusion within the organization
• D)top management agree as to the type and extent of system to implement

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Definitions:

Public Service Commission

A regulatory body governing the rates and services of public utilities, such as electricity, gas, and water within a certain jurisdiction.

Rate-making Purposes

The process used by regulators to establish fair and reasonable rates charged to customers by utility companies or insurers.

Electrical Grid Substations

Facilities in the electric grid that transform voltage levels between the generating stations and consumers, facilitating the efficient transmission of electricity.

Fixed Charge Coverage Ratio

This ratio measures a company's ability to cover its fixed charges, such as interest and leases, with its earnings before interest and taxes.