To Safeguard a Business's Assets and Reduce the Likelihood of Fraud

question 104

Multiple Choice

To safeguard a business's assets and reduce the likelihood of fraud and errors,its accounting information system ________.

• A) should be manual
• B) must be flexible to accommodate changes in a business over time
• C) should work smoothly with the business's employees
• D) must provide adequate controls of a business's assets and data

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Definitions:

Audits

Systematic examinations and verifications of a company's financial and accounting records and operations.

Nonmaterial Way

A term often related to philosophical, spiritual or cultural practices that involves something intangible, not based on material or physical objects or needs.

Liability

The condition of having legal accountability, especially regarding debts or legal duties.

Contractually Agreed Upon Fee

A fee that parties have explicitly decided upon within a contract for services or goods.