Which of the following statements is correct regarding internal control?
A)A well-designed internal control environment ensures the achievement of an entity's control objectives.
B)An inherent limitation to internal control is the fact that controls can be circumvented by management override.
C)A well-designed and operated internal control environment should detect collusion perpetrated by two people.
D)Internal control is a necessary business function and should be designed and operated to detect all errors and fraud.

Question

Quizplus · Accepted Answer

An inherent limitation of internal control is that no matter how well designed, controls can be overridden by management, which is a risk that cannot be entirely eliminated.

Which of the Following Statements Is Correct Regarding Internal Control