The use of computers in processing accounting data
A) eliminates the need for accountants.
B) eliminates the double entry system as a basis for analyzing transactions.
C) eliminates the need for financial reporting standards such as those promulgated by the FASB.
D) may result in the elimination of document trails used to verify accounting records.

Question

Quizplus · Accepted Answer

While computers have greatly increased the efficiency and accuracy of accounting processes, they may also result in the reduction or elimination of paper trails used to verify transactions. This creates a risk of fraud or errors going undetected, and makes it important for companies to establish strong internal controls to ensure the integrity of their financial records. The use of computers does not eliminate the need for accountants, nor does it eliminate the double entry system or financial reporting standards such as those set by the FASB.

The Use of Computers in Processing Accounting Data