Which of the following is the MAJOR advantage of automating internal controls?
Which of the following is the MAJOR advantage of automating internal controls?
The major advantage of automating internal controls is to efficiently test large volumes of data. Automation allows for the quick and accurate processing and analysis of vast amounts of data, significantly improving efficiency and effectiveness in identifying issues or ensuring compliance with control requirements. This capability is particularly beneficial as it reduces the time and resources necessary for manual reviews and increases the reliability of control testing.
C. To efficiently test large volumes of data
C is correct.
While identifying transactions with no segregation of duties (option B) may be a potential benefit of automating internal controls, it is not typically considered the MAJOR advantage compared to the efficiency gained in testing large volumes of data. Automating internal controls primarily offers significant efficiency gains in testing processes, especially when dealing with large datasets or complex systems. Therefore, option C is the MAJOR advantage of automating internal controls.
The automated internal controll can help review transactions during a business process. Usually not the data is tested, but used to test processes.