Question

1) In this exercise, you displayed your utilities account balance because you recorded an entry to that account in a previous exercise.

Assume you recorded the entry to the wrong account in the previous exercise. The following message would have resulted when completing step 3 of this exercise.



What transaction-related control objective was not met in this situation

Answer 1

The transaction-related control objective that was not met when an entry was recorded in the wrong account is accuracy, which is essential for reliable financial reporting.

Step-by-step explanation:

When you recorded the entry to the wrong account in the previous exercise, the transaction-related control objective of accuracy was not met. These control objectives are imperative to ensure that transactions are recorded correctly, reliably, and as they occurred. If entries are not accurately reflected, it can result in misleading account balances. For instance, in accounting exercises, it is crucial to accurately sum up the columns for Exports, Imports, and Balance to ensure that the final balance number reflects the correct current account balance. Errors in these steps can lead to incorrect calculation of the merchandise balance and the current account balance.