Which of the following is an inherent limitation in internal control?

Question

Quizplus · Accepted Answer

Choice "C" is correct. Inherent limitations in internal control are limitations that exist despite implementation of appropriate controls. For example, faulty human judgment may result in errors in the design or use of internal controls. Choice "A" is incorrect. Assigning incompatible duties to a particular individual indicates a missing control, rather than an inherent limitation in internal control. Choice "B" is incorrect. Lack of segregation of duties indicates a missing control, rather than an inherent limitation in internal control. Choice "D" is incorrect. Lack of an audit committee indicates a missing control, rather than an inherent limitation in internal control.

Which of the Following Is an Inherent Limitation in Internal