Which of the Following Best Describes the Inherent Limitations That

question 50

Multiple Choice

Which of the following best describes the inherent limitations that should be recognized by an auditor when considering the potential effectiveness of an accounting system?

• A)Procedures whose effectiveness depends on segregation of duties can be circumvented by collusion.
• B)The competence and integrity of client personnel provides an environment conducive to accounting control and provides assurance that effective control will be achieved.
• C)Procedures designed to assure the execution and recording of transactions in accordance with proper authorizations are effective against irregularities perpetrated by management.
• D)The benefits expected to be derived from an effective accounting system usually do not exceed the costs of such control.

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Definitions:

Organizational Outcomes

The results or impacts of organizational activities, including productivity, employee retention, profitability, and customer satisfaction.

Return on Expectations

Return on Expectations measures the qualitative outcomes of a project or investment based on predefined objectives and stakeholders' expectations.

Post-only Design

A type of experimental design where outcomes are only measured after the intervention, without a pre-test comparison.

Data Collection Method

Techniques and tools used to gather information for analysis in research, ranging from surveys and interviews to observation and documentation.