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Which of the following represents inherent limitation of a system of internal controls in Cates plc?

Cates plc is a large organisation with a complex accounting and information system. Critical to an understanding of the system are the reporting lines and relationships between different departments.

Which of the following represents inherent limitation of a system of internal controls in Cates plc?
A . Lack of controls over the purchases system
B . Lack of in-depth knowledge of the purposes of controls
C . Lack of staff to ensure segregation of duties
D . The possibility that staff members will collude in fraud

Answer: D

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