Which of the following is TRUE of an effective accounting information system?
A) It has little influence in improving a company's internal control activities.
B) The cost of using an accounting information system is the same for both small and large businesses.
C) A compatible accounting information system works smoothly with the business's employees and organizational structure.
D) Large private companies prefer a manual accounting information system since their financial statements are not audited.

Question

Quizplus · Accepted Answer

An effective accounting information system should be compatible with the organizational structure and employees of the business to ensure a smooth operation. Option A is false because an effective accounting information system should enhance internal control activities. Option B is false because the cost of using an accounting information system may vary based on the size and complexity of a business. Option D is false because all companies, regardless of size, are subject to financial statement audits.

Which of the Following Is TRUE of an Effective Accounting