In order to assure that accounting information is accurate and to avoid potentially costly mistakes in the decision making process, firms should:
A)Design and monitor an effective system of internal accounting controls.
B)Have the internal auditors and controller each check the accounting data before it is released to management.
C)Purchase an accounting system that is designed specifically for the industry in which the firm conducts business.
D)None of the above.

Question

Quizplus · Accepted Answer

Designing and monitoring an effective internal accounting control system is crucial to ensure accuracy and avoid costly mistakes. This includes setting up checks and balances, segregating duties, and monitoring the system for any irregularities or errors. While having internal auditors and controllers check the accounting data is also important, it is not enough on its own to ensure accuracy, as these individuals may also make mistakes or be subject to bias. Purchasing an industry-specific accounting system can be helpful, but it is not the most important factor in ensuring accuracy, as the system itself is only as good as the controls in place to monitor and manage it.

In Order to Assure That Accounting Information Is Accurate and to Avoid