Limitations of Internal Control in Financial Reporting

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

What procedures are put in place within an organization to ensure business is carried out in an orderly, effective, and accurate manner?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 79,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime
Already registered? Log in here for access

1. _____ human error is the result of planned actions.

2. _____ human error is the result of honest mistakes and are not planned actions.

Create your account to access this entire worksheet
A Premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

What is internal control? What are the limitations of internal controls? These are the types of questions you'll see on this quiz and worksheet. Be prepared to answer questions about human error as well.

Quiz & Worksheet Goals

Use this printable worksheet and quiz to review:

  • Internal control limitations
  • Human error resulting from planned actions
  • Error from honest mistakes

Skills Practiced

You'll be able to strengthen the following skills:

  • Interpreting information - verify you can read information regarding procedures that are put in place to ensure business is carried out in an orderly, effective and accurate manner and interpret it correctly
  • Knowledge application - use your knowledge to answer questions about the internal control limitations
  • Distinguishing differences - compare and contrast topics from the lesson, such as the types of human error
  • Defining key concepts - ensure that you can accurately describe the principle that states that the cost of implementing a certain internal control procedure must not outweigh the benefit that the company receives from that procedure

Additional Learning

Limitations of Internal Control in Financial Reporting is the name of the lesson that can give you more details about this subject. The lesson covers objectives like:

  • Identify the purpose of internal controls in a business
  • Describe the two limitations to any internal control
  • Understand when a new procedure will be effective or not
Support