The accuracy of the results of the accounting system (account balances) is heavily dependent upon the
A) knowledge and skills of the auditor.
B) adequacy of the entity-level controls.
C) accuracy of the inputs and processing (transactions).
D) training provided to the personnel.

Question

Quizplus · Accepted Answer

The accuracy of the inputs and processing of transactions is critical to the accuracy of the accounting system's results. Errors in recording transactions or in processing data can result in inaccurate account balances, which can have a significant impact on financial reporting. While auditor knowledge and skills, entity-level controls, and personnel training are all important factors in maintaining the accuracy of the accounting system, they are not as directly tied to the accuracy of the account balances as the accuracy of the inputs and processing.

The Accuracy of the Results of the Accounting System (Account