Two Important Limitations of Internal Control Systems Are (1) Human

question 108

True/False

Two important limitations of internal control systems are (1) human error or human fraud, and (2) cost-benefit.

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Definitions:

Visualizing

The process of forming mental images or concepts to understand or analyze information.

Economic Models

Simplified representations of complex economic processes, used to predict economic variables and understand their interactions.

Reality

The state of things as they actually exist, as opposed to how they may appear or may be thought to be.

Assumptions

Premises or conditions accepted as true without proof, used as the basis for reasoning, discussion, or calculation.