Which of the Following Best Describes the Inherent Limitations That

Multiple Choice

Which of the following best describes the inherent limitations that should be recognized by an auditor when considering the potential effectiveness of an accounting system?

A) Procedures whose effectiveness depends on segregation of duties can be circumvented by collusion.
B) The competence and integrity of client personnel provides an environment conducive to accounting control and provides assurance that effective control will be achieved.
C) Procedures designed to assure the execution and recording of transactions in accordance with proper authorizations are effective against irregularities perpetrated by management.
D) The benefits expected to be derived from an effective accounting system usually do not exceed the costs of such control.