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:

Environmentally Adaptive

The capacity of an organism or a system to adjust or change in response to environmental conditions.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, celebrated for enriching the community with different perspectives, traditions, and experiences.

Gene Replication

The process by which a cell duplicates its DNA, ensuring that each new cell receives an exact copy of the genetic material.

Mutations

Changes in the nucleotide sequence of the DNA within an organism's gene or chromosome, leading to the creation of a new character or trait not found in the parental type.