The Discovery and Correction of Errors Is Important in a Computerized

question 181

Essay

The discovery and correction of errors is important in a computerized system. What kinds of errors might occur in these systems? What type
(s) of errors will be prevented in a computerized system?
1. Failing to record transactions.
2. Recording a transaction more than once.
3. Recording a transaction in incorrect accounts.
4. Entering an incorrect number in both the debit and credit parts of the transaction.​With a computerized system, you cannot process a transaction unless debits equal credits. Additionally, you cannot post to the wrong account, as posting occurs automatically.
192. Identify the three main advantages of a computerized accounting system over a manual accounting system.

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Definitions:

SEC

The United States Securities and Exchange Commission is a federal entity tasked with the enforcement of federal securities legislation and the oversight of the securities sector.

Accounting Irregularities

Deviations from standard accounting practices, often indicating error or fraud, which can lead to misstated financial reports.

Companies' Filings

Documents and reports that businesses are required to submit to regulatory authorities, containing financial and other important information about the company.

Bill and Hold

A sales arrangement where goods are invoiced and recognized as sold, but delivery is delayed at the buyer's request.