Internal controls include policies to protect company assets and achieve complia
ID: 2534468 • Letter: I
Question
Internal controls include policies to protect company assets and achieve compliance with laws and regulations.
True
False
The flexibility principle prescribes that an accounting information system be able to adapt to changes in the company, business environment, and needs of decision makers.
True
False
The compatibility principle requires that an accounting system report useful, understandable, timely, and pertinent information for effective decision making.
True
False
The cost-benefit principle prescribes that the benefits from an activity in an accounting information system should outweigh the costs of that activity.
True
False
The five basic components of accounting systems are source documents, input devices, information processors, information storage, and output devices.
True
False
Due to electronic files and Web communications, source documents are no longer required.
True
False
Information processors capture information and enable its transfer to the system's information processing component.
True
False
With advanced technology there is no need to trace information that has been entered into an accounting information system to its source.
True
False
Input devices involve converting data on source documents from written or electronic form to a form usable for the system.
True
False
Accounting information processes are structured to eliminate the need for professional judgment.
True
False
When auditors audit financial statements and a company's controls they rely on accounting system databases.
True
False
Explanation / Answer
1. True
2. True
3. False
4. True
5. True
6. False
7. False (The input devices capture the information)
8. False
9. True
10. False ( Professional judgement in fact is an important part of information processes)
11. True
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