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)Develop and implement a code of ethics.

Question

Quizplus · Accepted Answer

Designing and monitoring an effective system of internal accounting controls is crucial to ensuring the accuracy of accounting information and preventing costly mistakes. Internal controls can include measures such as segregating duties, regular reconciliations, restricting access to sensitive information, and conducting audits. While the other choices may also be important, they do not address the specific issue of accuracy in accounting information.

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