Which of the Following Is not a Limitation of Internal

question 104

Multiple Choice

Which of the following is not a limitation of internal control?

• A)Cost of establishing control procedures should not exceed their benefit.
• B)The human element.
• C)Collusion.
• D)The size of the company.

---

Definitions:

Systematic Risk

The danger associated with the whole market or a specific market segment that cannot be reduced by diversifying investments.

Rate of Inflation

A measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Expected Return

The predicted amount of gain or loss an investment is anticipated to generate, based on historical performance or statistical analysis.

Economic Activity

The total amount of production, distribution, and consumption of goods and services in an economy.