Question

Which of the following benefits of an effective accounting information system provides safeguards for a business' assets and reduces the likelihood of fraud and errors?

Option 1: Compatibility
Option 2: Control
Option 3: Flexibility
Option 4: Relevance

Answer 1

The benefit of an effective accounting information system that provides safeguards for a business' assets and reduces the likelihood of fraud and errors is control.

Step-by-step explanation:

The benefit of an effective accounting information system that provides safeguards for a business' assets and reduces the likelihood of fraud and errors is the option of Control. The control feature in an accounting information system ensures that appropriate checks and balances are in place to protect the assets of a business.

For example, a control feature could be the requirement for dual authorization for high-value transactions, where two individuals are needed to authorize and approve the transaction.

By implementing control measures, businesses can minimize the risk of fraud and errors, safeguard their assets, and maintain the integrity of their financial information.