Asked by Angie Harper on May 18, 2024
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Internal control systems are subject to limitations that usually arise from either (1)human error or human fraud,or (2)the cost-benefit principle.
Internal Control Systems
Procedures and mechanisms implemented by a business to safeguard assets, enhance the reliability of financial reports, and ensure compliance with laws and regulations.
Cost-Benefit Principle
This principle involves analyzing whether the cost of an action outweighs its benefits before proceeding with the decision.
- Acknowledge the constraints and considerations relevant to internal control systems.
Verified Answer
Learning Objectives
- Acknowledge the constraints and considerations relevant to internal control systems.
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