ACCA Applied Knowledge · Business and Technology · The impact of advances in technology
A manufacturer automates its payroll processing. Which is the most likely control-related benefit?
The most likely benefit is greater consistency, as calculations follow programmed rules rather than individual judgement, reducing clerical errors. Automation does not remove fraud risk, does not remove the need to authorise master data changes, and cannot make output accurate if the input data is wrong.
- AElimination of the need for any authorisation of changes to master data
- BGreater consistency because calculations follow programmed rules rather than individual judgementCorrect
- CRemoval of the risk of fraud by employees
- DGuaranteed accuracy even if the input data is wrong
Explanation
Automation applies the same programmed rules each time, improving consistency and reducing arithmetic and clerical error. It does not remove the need to authorise master-data changes, cannot eliminate fraud, and cannot correct wrong input (garbage in, garbage out).
Did you get it right without looking?
One question tells you little. A timed set on The impact of advances in technology shows your real accuracy, how long you take and where you lose marks.
More The impact of advances in technology questions
- A company stops buying its own servers and instead rents computing power, storage and networking over the internet from a provider, paying o…
- Which of the following best describes the 'pay-as-you-go' feature of cloud computing?
- A retailer installs software 'bots' that log into its systems, copy supplier invoice data from emailed PDFs into the accounts payable ledger…
- A firm is considering automating its payroll process. Which of the following is the most significant risk that management should address spe…
- Which of the following best describes business process automation?
- Which of the following is a recognised risk for a business that moves its accounting systems to a cloud provider?