In an AIS, human judgment is important in:
A)The second step of the accounting cycle.
B)The design and implementation of internal controls.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

Human judgment is important in both the second step of the accounting cycle, which is recording transactions, and in the design and implementation of internal controls. In recording transactions, human judgment is needed to ensure that the transactions are accurately recorded and properly classified. In designing and implementing internal controls, human judgment is required to identify potential risks and weaknesses in the system and to determine the appropriate controls to mitigate those risks.

In an AIS, Human Judgment Is Important In