Internal Control System Have Limitations

question 68

Multiple Choice

Internal control system have limitations. These include all of the following except

• A) possibility of honest error
• B) circumvention
• C) management override
• D) stability of systems

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Definitions:

Acquisition Method

An accounting approach used for consolidating the financial statements of a parent company and its subsidiaries.

Voting Common Shares

Shares of common stock that provide the shareholder with the right to vote on corporate matters.

Net Income

The total profit of a company after all revenues, costs, and expenses have been deducted, also known as the bottom line.