Which of the Following Factors Would Most Likely Be Considered

question 63

Multiple Choice

Which of the following factors would most likely be considered an inherent limitation to an entity's internal control?

• A)The complexity of the information processing system.
• B)Human judgment in the decision making process.
• C)The ineffectiveness of the board of directors.
• D)The lack of management incentives to improve the control environment.

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Definitions:

Customer Expectations

The standards or benchmarks that customers anticipate when they purchase a product or service, influencing their satisfaction and loyalty.

Competition

The rivalry between companies selling similar products or services with the goal of achieving revenue, profit, and market share growth.

Competitive Position

A company's standing or ranking in relation to its competitors in terms of market share, profitability, and brand strength.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor performance against strategic goals.