Internal control policies and procedures have limitations that arise from many elements. Match the limitation on the left with its definition on the right.

Instructions

Human error

Human error drop zone empty.

Human fraud

Human fraud drop zone empty.

Cost-benefit principle

Cost-benefit principle drop zone empty.

Internal control environment

Internal control environment drop zone empty.

Involves intent by people to defeat internal controls for personal gain

Can occur from carelessness, misjudgment or confusion

Management must convey commitment to internal control policies and procedures

Dictates that the costs of internal controls must not exceed their benefits