Internal Controls in Large and Medium Sized Entities Can Only

question 112

Multiple Choice

Internal controls in large and medium sized entities can only provide an entity with reasonable assurance in achieving its financial reporting objectives. Which of the following is not an inherent limitation of internal control?

• A) human error that results in a breakdown in internal control
• B) collusion by two or more individuals to circumvent a control
• C) a control within a software program being overridden or disabled
• D) changing audit risk parameters

Investigate the effects of self-regulation strategies and their importance for goal achievement.

Understand the historical foundations and key figures in scientific psychology.

Recognize the fundamental theories and philosophical influences in psychology.

Identify the early schools of thought and their central tenets within psychology.

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Definitions:

Price Competition

A market situation in which companies attempt to win customers by offering lower prices than their competitors.

Waste of Resources

The inefficient use of materials, labor, energy, or capital that does not maximise potential utility or value.

Monopolistically Competitive

In a monopolistically competitive market, many firms sell products that are similar but not identical, allowing for product differentiation and some degree of market power over prices.

Short Run

A period in economic analysis in which at least one input is fixed while others are variable.