Which of the following is not a limitation of internal control?
A)Cost of establishing control procedures
B)The human element
C)Use of a bank account
D)The size of the company

Question

Quizplus · Accepted Answer

The use of a bank account is actually a common internal control procedure, rather than a limitation. A bank account can help to prevent fraud and ensure the accuracy of financial transactions. A, B, and D are all limitations of internal control. The cost of establishing control procedures can be significant, and may not be practical or feasible for small businesses. The human element, such as employee errors or misconduct, can undermine even the most well-designed internal controls. The size of the company can also present challenges in implementing effective internal controls, particularly for decentralized organizations with multiple locations or business units.

Which of the Following Is Not a Limitation of Internal