Question

Which one of the following control activities is relevant when a company uses a computerized (rather than manual) accounting system?
a) Establishment of responsibility.
b) Segregation of duties.
c) Independent internal verification.
d) All of these answer choices are correct.

Answer 1

Answer:

d) All of these answer choices are correct.

Explanation:

Company all over the world trys as much as possible to minise cost and increase profits. This is mostlydone by reducing the level of manual work carried out in the company while at the same time automating the processes and jobs that are required.

From the options listed above, all the answer choices are correct. The control activities are correct when a company uses a computerized accounting system rather than manual accounting system.

Answer 2

Answer: d) All of these answer choices are correct

Explanation: Internal control activities are procedures used in managing, safeguarding, ensuring reliability and integrity of financial information. However, all the internal control activities are to be followed whether the company employs manual accounting system or the computerized accounting system. The internal control activities include : Establishment of activities, Segregation of duties, Independent internal verification, Documentation of activities, Reconciliation of events and occurrences.