QUESTION: 181

Accounting controls are designed to provide reasonable assurance that:

transactions are excluded in accordance with management's general or specific authorization
transactions are recorded as necessary to permit preparation of non-reliable financial statements
accountability for assets is maintained
All of the above

Answer(s): C

The basic tasks of a system generally include the recognition of an economic event as a transaction, followed by approval, computation, posting, summarization, accumulation and reporting, this is called:

transaction cycle
accounting system
business deals
computing cycle

Answer(s): B

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QUESTION: 183

What are the techniques employed to prevent and detect errors in processing transactions, to safeguard assets and to ensure the reliability of financial records.