Which of the Following Most Likely Would Not Be Considered

question 16

Multiple Choice

Which of the following most likely would not be considered an inherent limitation of the potential effectiveness of an entity's internal controls?

• A)Incompatible duties.
• B)Management override.
• C)Mistakes in judgment.
• D)Collusion among employees.

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Definitions:

Ownership

The legal right or state of having control and possession over something, such as property or a company.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in generating sales from its assets.

Net Sales

The revenue from goods or services sold after deducting returns, allowances for damaged or missing goods, and discounts.

Total Assets

The sum of all current and non-current assets owned by a company, representing its total economic resources.