Which of the Following Is a Limitation of Internal Control

question 13

Multiple Choice

Which of the following is a limitation of internal control?
I The accounting standards
II The cost of the controls
III The possibility of collusion between two or more employees

• A) I and III
• B) I and II
• C) II and III
• D) I, II and III

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Definitions:

Royalty Fees

Royalty fees are payments made by one party (the licensee) to another (the licensor) for the right to use the licensor's property, typically intellectual property, under agreed terms.

Percentage

A portion, share, or rate expressed as a fraction of 100.

Good Cause

A legitimate, justifiable reason for taking a particular action, often used in legal and employment contexts.

Franchise Agreement

A legal document outlining the rights and responsibilities of the franchisor and franchisee, including terms of payment, support, and operation.