Which One of the Following BEST Describes the Inherent Limitations

question 109

Multiple Choice

Which one of the following BEST describes the inherent limitations that should be recognised by an auditor when considering the potential effectiveness of a system of internal accounting control?

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

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Definitions:

Job Seekers

Individuals actively looking for employment opportunities.

Recruiters

Professionals responsible for identifying, attracting, and hiring talent for job positions within organizations.

Human Capital

The collective skills, knowledge, and abilities of an organization's employees considered as an economic value.

Workforce Participants

are individuals who are actively engaged in the workforce, either as employees, self-employed individuals, or volunteers, contributing to the economic activity.