The control principle for accounting information systems requires that the:
A) Benefits from an activity outweigh the costs of the activity.
B) System report useful, understandable, timely, and pertinent information for effective decision making.
C) System must have internal controls.
D) System adapts to changes in the company, business environment, and needs of decision makers.
E) System conforms to a company's activities, personnel, and structure.

Question

Quizplus · Accepted Answer

The control principle for accounting information systems requires that the system must have internal controls, which are designed to ensure that the system operates efficiently, effectively, and in compliance with applicable laws and regulations. The internal controls should prevent or detect errors, fraud, or other irregularities, and provide reasonable assurance that the financial statements are accurate and reliable.

The other choices are also important principles of accounting information systems, but they do not specifically relate to control. For example, choice A relates to cost-benefit analysis, choice B relates to usefulness and relevance of information, choice D relates to adaptability to changes, and choice E relates to alignment with the company's structure and personnel.

The Control Principle for Accounting Information Systems Requires That The