Economics · Auditing and Internal Control
Despite having a robust system of internal controls, an organization may still face financial irregularities due to certain inherent limitations. Which of the following best represents an inherent limitation of internal control?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The requirement of physical authorization for high-value transactions.
- 2Collusion between two or more employees to circumvent established procedures.✓
- 3The implementation of a centralized whistle-blowing policy.
- 4The regular performance of reconciliation between ledger accounts.
Correct answer
Collusion between two or more employees to circumvent established procedures.
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