Which of the Following Is an Inherent Limitation in Internal

question 933

Multiple Choice

Which of the following is an inherent limitation in internal control?

• A) Incompatible duties.
• B) Lack of segregation of duties.
• C) Faulty human judgment.
• D) Lack of an audit committee.

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Definitions:

Receivables

Amounts due from customers to a company for goods delivered or services rendered, awaiting payment.

Inventory Turnover

A ratio showing how many times a company has sold and replaced inventory over a certain period of time, indicating the efficiency of inventory management.

Financing Costs

Expenses associated with raising capital through debt or equity.

Obsolescence

The process of becoming outdated or no longer used, often due to technological advances.