Which of the Following Is an Inherent Limitation of Internal

question 10

Multiple Choice

Which of the following is an inherent limitation of internal controls?

• A)Lack of auditor independence.
• B)Collusion.
• C)Separation of duties.
• D)Employee peer review.

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Definitions:

Competitive Advantage

An attribute that allows an organization to outperform its competitors, such as cost structure, product quality, or market positioning.

Oil Imports

The purchasing of crude oil and petroleum products from foreign countries to meet domestic consumption and energy requirements.

Trade Deficit

A condition in which a nation buys more from foreign countries than it sells to them, leading to a deficit in the trade balance.

China

A country in East Asia, the world's most populous nation, with a significant impact on global economy and geopolitics.