Operation Risks with an ERP System Includes All of the Following

question 52

Multiple Choice

Operation risks with an ERP system includes all of the following except:

• A)Security is a greater risk because processes are integrated.
• B)An unauthorized user can affect more processes in the legacy system.
• C)Incorrect data generated in a given process can automatically post flawed data to other processes.
• D)Online privacy and confidentiality risks are magnified.

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded only when cash is received or paid out.

Accounting

The systematic process of recording, summarizing, and analyzing financial transactions of a business, providing insight into its financial health and performance.

Correct Entry

An accurate and approved accounting record reflecting a financial event.

Incorrect Entry

A mistake or error in recording financial transactions, which can lead to discrepancies in accounting records and financial statements.