CPA Australia identifies five reasons an internal control system does not provide 100 percent assurance

CPA Australia identifies five reasons an internal control system does not provide 100 percent assurance that an organisation's objectives will be achieved. These reasons do NOT include:

1) judgement error.

2) unexpected transactions.

3) weak internal controls.

4) natural disasters.

Solutions

Expert Solution

Answer : Option - 4, Natural Disasters

Explanation :

Reasons for not having a good internal control or not a 100% control assurance that an organisation's objectives have achieved are as follows :

1. Judgement error

2. Unexpected transaction

3. Collusion

4. Substance over Form

5.Weak internal controls

6. Management override

These factors does not include natural disasters as a reason for not giving 100% control assurance that an organisation's objectives have achieved.

ekkarill92 answered 1 year ago

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