In designing accounting control systems,top managers should consider the system's impact on the behavior of employees.

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Quizplus · Accepted Answer

This statement is true. Accounting control systems can influence employee behavior, so top managers should carefully consider the potential impact of these systems on employees. For example, if an accounting control system creates incentives for employees to prioritize short-term financial gains over long-term performance, this could lead to unethical or unsustainable practices. Alternatively, a well-designed accounting control system could encourage employees to act in the best interests of the organization, by promoting transparency, accountability, and responsible decision-making.

In Designing Accounting Control Systems,top Managers Should Consider the System's