Final answer:
A computerized accounting system is not a requirement for proper internal control, though it often helps with monitoring and data integrity. Internal controls can still be effective in manual systems, especially in small businesses with fewer transactions. Larger, more complex businesses typically require computerized systems.
Step-by-step explanation:
The assertion that an accounting system must be computerized to ensure proper internal control is not entirely accurate. While computerized systems can enhance controls by providing more efficient monitoring and better data integrity, the core of internal control lies within the procedures and policies set by a company. Internal controls can be effective in both manual and computerized accounting systems if they are well-designed and properly implemented. For instance, segregation of duties, authorization of transactions, and physical control over assets are crucial internal control principles that can be applied in both settings.
Furthermore, a manual system may be adequate for very small businesses with a low volume of transactions, where the owner can closely monitor activities. However, as a company grows in size and complexity, computerized systems usually become necessary to handle the increasing volume and to provide timely and accurate financial information.