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ACCA Applied Knowledge · Business and Technology · Financial systems and technology

Orla Co's integrated accounting system automatically posts a sales invoice entered in the sales module to the receivables ledger, the general ledger control account and the inventory records. Which is the main advantage of this design?

The main advantage is that data is entered once and automatically updates all related records, reducing duplication and keeping ledgers consistent. It does not make input genuine or accurate, so validation checks and segregation of duties are still required.

  1. AIt removes the need for any input validation checks
  2. BIt guarantees that all transactions entered are genuine
  3. CIt reduces duplicated data entry and keeps the ledgers consistent with one anotherCorrect
  4. DIt makes segregation of duties unnecessary

Explanation

Entering data once and updating all linked records reduces duplication and inconsistency between ledgers. However, integration does not ensure the input is genuine or accurate, so validation and segregation controls are still needed; the other options wrongly claim otherwise.

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