CIMA BA3 · Chapter 8 · Question 10 of 10
Which of the following is a limitation of any system of internal control?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Two or more employees may collude to get around segregation of duties
Explanation
Internal controls can only give reasonable assurance. They can be circumvented by collusion or overridden by management, and they are subject to human error and cost constraints. The other statements are benefits of internal control, not limitations.
More Control of accounting systems MCQs
- Q2Which of the following is an example of segregation of duties?
- Q3What is the main role of an external auditor of a limited company?
- Q4Which of the following statements about internal audit is correct?
- Q5A cashier steals money received from customer A, then uses money later received from customer B to clear customer A's account, and so on…
- Q6Which of the following is best described as a detective control rather than a preventive control?