Please post your response to the following: Chapter 5 discusses internal control. Why are internal controls and audit trails important in a computerized accounting system?

Thanks. What do you think? Does it matter what Chapter 5 stated? Did you read it?

well Bob yes it does but i also like to get other peoples opinion on what they think that have this same class i am taking. sometimes two heads are better than one and discussing it can make you see it in a different way. besides if you really don't want to discuss the question why do answer it. just asking not trying to offend you.

This is NOT the place to see what others in your class think. Most of our responses come from our regular tutors.

Do others in your class read this board?

YES THEY DO...

THANKS ANYWAY...

Internal control help minimize or eliminate risk, protect company assets,and help efficiency. then audit trials are a record of all entries or changes in the company's data that include all users and the actions they performed. I hope this helped.

Internal controls and audit trails are crucial in a computerized accounting system because they provide a mechanism to ensure the accuracy, integrity, and security of financial information. Specifically, internal controls are policies and procedures put in place to safeguard assets, prevent fraud, and ensure reliable financial reporting.

Now, to understand their importance in a computerized accounting system, we need to consider a few factors. First, computerized accounting systems rely on electronic data processing, which introduces inherent risks such as data entry errors, unauthorized access, and system malfunctions. Without proper controls, these risks can lead to inaccurate financial information or potential financial fraud.

To mitigate these risks, internal controls are implemented. They involve measures like segregation of duties, where different individuals are responsible for different stages of a transaction to prevent a single person from having full control over the entire process. Additional controls include access restrictions, password policies, regular backups, and encryption of sensitive data.

Furthermore, audit trails play a vital role in computerized accounting systems. An audit trail is a chronological record that traces the path of a transaction through the system, including who initiated it, when, and any subsequent modifications made. It ensures transparency and accountability, allowing for the detection and investigation of any irregularities or unauthorized activities.

By implementing internal controls and utilizing audit trails, organizations can gain confidence and assurance that their financial information is accurate, reliable, and secure. It also enables timely identification and remediation of any potential issues, reduces the risk of financial fraud, and assists in meeting legal and regulatory requirements.

In summary, internal controls and audit trails are important in a computerized accounting system to mitigate risks, ensure accuracy and integrity of financial information, prevent fraud, and provide transparency and accountability.