Which one of the following is not an inherent limitation in an entity's internal controls?
A) mistakes in judgment
B) collusion
C) cost versus market
D) breakdowns
E) management override

Question

Quizplus · Accepted Answer

Cost versus market is a valuation principle used in accounting and finance, not an inherent limitation of internal controls. Internal controls are designed to manage and mitigate risks related to financial reporting, compliance, and operations, but they may not address or be designed to deal with the valuation of assets or decisions related to the cost versus market considerations.

Which One of the Following Is Not an Inherent Limitation