3: E.1. Introduction to Internal Controls

Question 1

Preventive controls are an integral part of virtually all accounting information systems. All of the following are essential elements of a preventive control system except

A. Separation of responsibilities.
B. Documentation of policies and procedures.
C. sound personnel practices.
D. Implementation of state-of-the-art systems.

Answer 1

D is the correct answer, and that means bringing a new modern system to the company, while that does not mean it will help in internal control, you can have a strong internal control in simple system