Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

Financial Accounting

6. Internal Controls and Reporting Cash

Five Components of Internal Controls

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Multiple Choice

What is an advantage of using technology in the internal control system?

It eliminates the need for human oversight in all control activities.

It guarantees that fraud cannot occur within the organization.

It enhances the accuracy and timeliness of financial information.

It reduces the importance of monitoring and control environment components.

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Verified step by step guidance

Understand the role of technology in internal control systems: Technology is used to automate processes, improve accuracy, and enhance the timeliness of financial information.

Evaluate the incorrect options: Technology does not eliminate the need for human oversight, as human judgment is still required for decision-making and monitoring. Similarly, technology cannot guarantee that fraud will not occur, as fraud prevention also depends on the design and implementation of controls.

Focus on the correct option: Technology enhances the accuracy and timeliness of financial information by reducing manual errors, automating repetitive tasks, and providing real-time data for decision-making.

Consider the importance of monitoring and control environment: Technology supports these components but does not reduce their importance. Monitoring and a strong control environment remain critical for effective internal controls.

Conclude that the correct answer is: 'It enhances the accuracy and timeliness of financial information,' as this aligns with the primary benefits of integrating technology into internal control systems.