ITPEC IP April 2024 Question 65
ITPEC IP April 2024 — Question 65 of 100
All three departments participate because sales transactions, accounting processing, and the supporting information systems can affect external financial reports. Internal control over financial reporting covers every process that can influence the accuracy, completeness, authorization, processing, and presentation of financial statements. Order-entry data originates in sales, flows through IT systems, and is reflected in accounting records.
Answer (c)
Why not others:
- (a) wrongly excludes the sales process that originates financially relevant transactions
- (b) wrongly limits responsibility to the accounting department
- (d) wrongly excludes automated IT controls and system operations
Key rule: Financial-reporting control is end-to-end: business departments, accounting, and IT all own controls where their work affects reported financial information.
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