The Limitations of Internal Control Systems Include

question 42

Multiple Choice

The limitations of internal control systems include:

• A) absolute assurance for safeguarding against customer theft.
• B) employee indifference to correct procedures.
• C) cost of implementation.
• D) all of these options.

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Definitions:

Accounting Policies

Unique theories, platforms, systems, edicts, and maneuvers practiced by an organization in the creation and issuance of its financial testimonies.

Political Cost Hypothesis

A theory suggesting that larger firms are more likely to be subject to government scrutiny and regulation, thus incurring additional costs to comply with political expectations.

Political Costs

Wealth transfers imposed on the entity, resulting from political processes.

Accounting Policies

Specific convictions, understructures, modes, prescriptions, and regimens enacted by an entity for the generation and proclamation of financial analyses.