What is an advantage of using technology in the internal control system?

• A. It eliminates the need for human oversight in all control activities.
• B. It guarantees that fraud cannot occur within the organization.
• C. It enhances the accuracy and timeliness of financial information.
• D. It reduces the importance of monitoring and control environment components.

Answer: (C)

Verified step by step guidance

1. Understand the role of technology in internal control systems: Technology is used to automate processes, improve accuracy, and enhance the timeliness of financial information.
2. Evaluate the incorrect options: Technology does not eliminate the need for human oversight, as human judgment is still required for decision-making and monitoring. Similarly, technology cannot guarantee that fraud will not occur, as fraud prevention also depends on the design and implementation of controls.
3. Focus on the correct option: Technology enhances the accuracy and timeliness of financial information by reducing manual errors, automating repetitive tasks, and providing real-time data for decision-making.
4. Consider the importance of monitoring and control environment: Technology supports these components but does not reduce their importance. Monitoring and a strong control environment remain critical for effective internal controls.
5. Conclude that the correct answer is: 'It enhances the accuracy and timeliness of financial information,' as this aligns with the primary benefits of integrating technology into internal control systems.