An effective accounting information system with adequate internal controls can safeguard a business's assets and reduce the likelihood of fraud and errors.

Question

Quizplus · Accepted Answer

An effective accounting information system with internal controls is designed to protect the assets of a business and to prevent fraud and errors. It achieves this through various measures such as proper segregation of duties, regular monitoring of transactions, and authorization procedures. Thus, such a system can greatly reduce the risks associated with misappropriation of assets or intentional manipulation of financial records.

An Effective Accounting Information System with Adequate Internal Controls Can