Which of the following is not an inherent limitation of internal controls?
A) inappropriate assessment of the effectiveness of internal controls
B) collusion by employees
C) management overriding a control
D) misunderstanding of instructions

Question

Quizplus · Accepted Answer

Inherent limitations of internal controls include factors like collusion by employees (B) and management overriding a control (C), which cannot be completely eliminated by any system of internal controls. Misunderstanding of instructions (D) can also be seen as a limitation, but it's more related to the execution rather than an inherent flaw. Inappropriate assessment of the effectiveness of internal controls (A) is not an inherent limitation; rather, it's an error in evaluating how well the controls are working.

Which of the Following Is Not an Inherent Limitation of Internal