Which of the following is an example of an 'inherent limitation' of internal control?

Answer options:

Lack of segregation of duties.

Management override of controls.

Incompetent staff.

Missing documentation.

How to approach this question

Inherent Limitations: Collusion, Human Error, Management Override. These exist in ALL systems.

Full Answer

B.Management override of controls.✓ Correct

Inherent limitations are weaknesses that exist in any system of internal control, regardless of how well designed. They include: Human error, Collusion, and Management Override. Other options are specific deficiencies that can be fixed.

Common mistakes

Confusing specific flaws (lack of segregation) with universal limitations.

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