The impact of technology on internal controls includes:
A) Reduced processing errors.
B) Elimination of the need for regular audits.
C) Fewer hard copies of source documents.
D) More efficient separation of duties.
E) Reduced processing errors and fewer hard copies of source documents.

Question

Quizplus · Accepted Answer

The impact of technology on internal controls includes the reduction of processing errors and the decrease in the number of hard copies of source documents, which are both achieved through automated systems. However, technology cannot eliminate the need for regular audits, as they are essential for ensuring the effectiveness of internal controls. Furthermore, while technology can facilitate the separation of duties, it cannot guarantee it without oversight and monitoring. Therefore, options A, B, and D are not the best choices.

The Impact of Technology on Internal Controls Includes