ACCA Applied Knowledge · Business and Technology · Financial information provided by business
A company's management accountant uses a report that combines sales figures from a regional spreadsheet with figures from the central accounting system. The two sources disagree and nobody knows which is correct. Which quality of information is most directly undermined?
Reliability is most directly undermined. When two sources give conflicting sales figures and no one can say which is right, users cannot trust the information, however relevant or clearly presented it may be.
- ARelevance
- BReliability and trustworthinessCorrect
- CUnderstandability
- DConciseness
Explanation
Conflicting figures from different sources with no way to establish which is right damage confidence in the data, so its reliability is undermined. Relevance concerns whether the data relates to the decision, and the scenario does not suggest it does not. Understandability and conciseness are not the issue.
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