The term "accounting independence" refers to
A)data integrity
B)separation of duties, such as record keeping and custody of physical resources
C)generation of accurate and timely information
D)business segmentation by function

Question

Quizplus · Accepted Answer

Accounting independence refers to the separation of duties, such as record keeping and custody of physical resources. This ensures that no single person or department has too much control or influence over financial transactions, which helps to prevent fraud and errors. It is a key component of internal controls in accounting that helps to maintain the integrity of financial information. Choices A, C, and D are related to accounting independence but do not directly define it.

The Term "Accounting Independence" Refers to