A company uses the account code 669 for maintenance expense.However, one of the company's clerks often codes maintenance expense as 996.The highest account code in the system is 750.What would be the best internal control check to build into the company's computer program to detect this error?
A)A check for this type of error would have to be made before the information was transmitted to the data processing centre
B)Valid-character test
C)Sequence test
D)Valid-code test

Question

Quizplus · Accepted Answer

A valid-code test would ensure that any account code entered is within the acceptable range (up to 750), thus detecting the incorrect entry of 996.

A Company Uses the Account Code 669 for Maintenance Expense