Day: November 9, 2025

For each of the following internal controls, which is the principal limitation?

• The preparation of a bank reconciliation

Select ONE answer:

1. Management override
2. Lack of Stakeholder Engagement With Reporting
3. Human error
4. Collusion

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct => For the preparation of reconciliations where calculations are involved, the inherent limitation is that these reconciliations are susceptible to human error.
4. Not correct

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