Q:

What is meant by the concept of reasonable assurance in terms of internal control? What are the inherent limitations of internal control?

0

What is meant by the concept of reasonable assurance in terms of internal control? What are the inherent limitations of internal control?

All Answers

need an explanation for this answer? contact us directly to get an explanation for this answer

Reasonable assurance recognizes that the cost of an entity's internal control system should not exceed the benefits that are expected to be derived. 
The effectiveness of any internal control system is subject to certain inherent limitations: 

  • Management override of internal control.
  • Personnel errors or mistakes.
  • Collusion.

need an explanation for this answer? contact us directly to get an explanation for this answer

total answers (1)

Similar questions


need a help?


find thousands of online teachers now