The information system component of internal control:
A) ensures that every system that processes accounting data should have the ability to capture transactions as they occur.
B) monitors controls.
C) offers hints of where fraud or errors could occur.
D) ensures that the IT department has adequate control procedures in place to ensure that no one can hack into the company's database.

Question

Quizplus · Accepted Answer

The information system component of internal control ensures that accounting data is captured accurately and timely, as transactions occur.

Answer: B
 The information system component of internal control also involves monitoring controls to ensure that they are working effectively.

Answer: C
 The information system component of internal control can provide hints about where potential fraud or errors may occur by identifying patterns or anomalies in the data.

Answer: D
 While the IT department is responsible for implementing control procedures to prevent hacking, this is not necessarily a component of internal control related specifically to the information system.

The Information System Component of Internal Control