Which of the Following Statements Is Correct

question 29

Multiple Choice

Which of the following statements is correct?

• A) Preventing errors during processing should not be an important objective of every accounting system.
• B) Preventive controls can be applied to each transaction during normal processing to avoid errors occurring.
• C) To be effective, controls over transactions should only include detective controls.
• D) The purpose of preventive controls is to discover fraud or errors that may have occurred during transaction processing.

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Definitions:

Hierarchical Structure

The organization of power and authority in a family.

Power

The ability or capacity to direct or influence the behavior of others or the course of events.

Cutoff

A predetermined point or limit beyond which something does not proceed or is not allowed.

Disengaged

lacking interest, involvement, or commitment; often used to describe students or employees who are not actively participating.