In: Accounting
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.
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.