ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions
Which of the following is an example of the accounting function relying on the IT function to provide a management information benefit?
An IT-produced database report allowing accountants to analyse sales by product and region quickly is the example of IT supporting accounting with management information. Preparing financial statements, setting credit policy and authorising payments are finance duties, and IT staff should be segregated from them.
- AIT staff preparing the annual financial statements for the directors
- BIT producing a database report that lets accountants analyse sales by product and region quicklyCorrect
- CIT deciding the organisation's credit control policy for customers
- DIT authorising payments to suppliers above a set limit
Explanation
IT supports accounting by providing databases, reporting tools and data extraction that let accountants analyse information quickly. Preparing statements, setting credit policy and authorising payments are finance responsibilities and should not be done by IT staff, who should be segregated from them.
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