Which of the following may represent the biggest challenge smaller public companies face in implementing effective internal control?
A)A lack of expertise
B)Reduced importance
C)Limited resources
D)Limited available guidance

Question

Quizplus · Accepted Answer

Smaller public companies often face a challenge of limited resources when implementing effective internal control measures. Due to their size, they may not have the financial capability to invest in advanced systems or hire specialized personnel. This can make it difficult to establish and maintain strong internal controls, leaving the company vulnerable to fraud or errors. While options A, B, and D may also present challenges, limited resources are likely to be the most significant factor impacting smaller public companies.

Which of the Following May Represent the Biggest Challenge Smaller