Question

Which of the following is most likely to be considered an inherent limitation of a client's internal control?

A) Complexity of the information system.
B) Human errors.
C) Management's interest in a profitable enterprise.
D) An ineffective audit committee.

Answer 1

The most likely inherent limitation of a client's internal control is B) Human errors, because errors due to human nature are inevitable in any system. The correct option is b.

Step-by-step explanation:

Which of the following is most likely to be considered an inherent limitation of a client's internal control? The answer is B) Human errors. Inherent limitations are those that exist due to the nature of internal controls themselves, rather than due to a flaw or deficiency in the design or implementation of the control. Typically, complexity of the information system (A) is an environmental factor that can affect internal control, but it's not an inherent limitation.

Management's interest in a profitable enterprise (C) is generally a driving force that supports the establishment of internal control, rather than a limitation. An ineffective audit committee (D) could exacerbate the risks of internal control failures but is also not considered an inherent limitation. Human errors, due to forgetfulness, misunderstanding, or misjudgment, are inevitable in any control system and thus represent an inherent limitation.