Which risk is associated with automating general ledger postings?

Which risk is associated with automating general ledger postings?

• A. Numerous automated transactions need more time to process and update financial data.
• B. Real-time transaction processing requires reconciliation and review of journal vouchers.
• C. Having no human intervention means the company could have errors in the data.
• D. Batched transactions need complex application logic to process.

Answer: (C)

Automating general ledger postings concentrates the posting logic in the system, so any data errors or misconfigurations in the automated rules can be posted across the ledger without a human review step. If there is no human intervention, bad data, incorrect journal templates, or erroneous mappings may go unnoticed and still affect financial statements. Automation speeds processes, but this speed can become a risk if automatic postings aren’t paired with strong data validation, automated reconciliations, clear audit trails, and proper change controls.

Automating general ledger postings concentrates the posting logic in the system, so any data errors or misconfigurations in the automated rules can be posted across the ledger without a human review step. If there is no human intervention, bad data, incorrect journal templates, or erroneous mappings may go unnoticed and still affect financial statements. Automation speeds processes, but this speed can become a risk if automatic postings aren’t paired with strong data validation, automated reconciliations, clear audit trails, and proper change controls.