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:

Effective Size Of A Team

The optimal number of members in a team that enables efficient performance and decision-making without compromising communication and cohesion.

Informal Leadership

Influence and leadership exercised by a person without formal authority, often through personal skills and relationships.

Emergent

Something that arises or appears unexpectedly or in the process of development or evolution.

Task-Oriented Goals

Specific targets focused on completing a task efficiently and effectively, often used to measure performance and productivity.