DRH Corporation's conversion process is highly automated; computers and other forms of information technology are used to prepare raw materials for production and to move partially completed units through the factory.Which of the following statements is most true?
A)DRH is not exposed to human error risk.
B)DRH should use regular equipment inspections as a form of internal control.
C)Both DRH is not exposed to human error risk and DRH should use regular equipment inspections as a form of internal control are true.
D)Neither DRH is not exposed to human error risk nor DRH should use regular equipment inspections as a form of internal control is true.

Question

Quizplus · Accepted Answer

While the conversion process may be highly automated, there is still a risk of human error in programming or maintenance of the equipment. Regular inspections of the equipment would serve as an internal control to identify any issues or potential risks. Therefore, option B is the most true statement. Option A is not true as there is always a risk of human error in any process. Option C is not entirely true as there is still a risk of human error, but regular equipment inspections would be a valid form of internal control. Option D is incorrect as both statements have some level of truth.

DRH Corporation's Conversion Process Is Highly Automated; Computers and Other