An internal auditor is evaluating the internal control system in place for an organization's cash- receipts cycle. According to the existing controls in place, the credit manager is responsible for authorizing the write-off of any debt that is deemed to be uncollectible. However, the auditor notices that two of the credit manager's assistants have been authorizing the write-off of bad debt without the credit manager's knowledge. Upon further investigation, the auditor discovers that the assistants have been authorizing the write-off of bad debt in a manner that benefits them personally. The inherent limitation of internal control best illustrated by this scenario is O Human error. O Collusion O Management override. O External events.

An internal auditor is evaluating the internal control system in place for an organization's cashreceipts cycle. According to the existing controls in place, the credit manager is responsible for authorizing the write-off of any debt that is deemed to be uncollectible. However, the auditor notices that two of the credit manager's assistants have been authorizing the write-off of bad debt without the credit manager's knowledge. Upon further investigation, the auditor discovers that the assistants have been authorizing the write-off of bad debt in a manner that benefits them personally. The inherent limitation of internal control best illustrated by this scenario is Human error. Collusion Management override. External events