The impact of technology on internal controls includes
A) Reduced processing error
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

Technology can lead to better internal controls by reducing processing errors through automation and electronic verification. Additionally, it can reduce the need for hard copies of source documents by storing them electronically, leading to fewer opportunities for document mishandling. This can lead to a more efficient separation of duties, as different individuals can perform different tasks electronically. However, it does not eliminate the need for regular audits as technology can also introduce new risks or vulnerabilities that require assessment and testing.

The Impact of Technology on Internal Controls Includes