In Order to Assure That Accounting Information Is Accurate and to Avoid

question 44

Multiple Choice

In order to assure that accounting information is accurate and to avoid potentially costly mistakes in the decision making process, firms should:

• A)Design and monitor an effective system of internal accounting controls.
• B)Have the internal auditors and controller each check the accounting data before it is released to management.
• C)Purchase an accounting system that is designed specifically for the industry in which the firm conducts business.
• D)None of the above.

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Definitions:

Informal Group Network

A network of personal and social relationships that occur naturally within the workplace, outside of formal organizational structures.

Interpersonal Communication Network

The system or pattern of exchanges of information and relationships between individuals within a group or organization.

Professional Association

An organization seeking to further a particular profession, the interests of individuals engaged in that profession, and the public interest.

Vertical Network

A type of communication network in organizations where information flows between different levels of the hierarchy, such as from managers to employees and vice versa.