Question

Internal control can provide only reasonable assurance that the entity’s objectives and goals will be met efficiently and effectively. One factor limiting the likelihood of achieving those objectives is that __________.

Answer 1

Answer: The correct answer is "the cost of internal control should not exceed its benefits"

Explanation: One factor limiting the likelihood of achieving those objectives is that the cost of internal control should not exceed its benefits. The cost of performing an internal control should never exceed the benefits that this may have as a result, since in that case its performance would be uneconomical.