Transaction-level controls are _______.
A)implemented by businesses to reduce the risk of misstatement due to error or fraud, and to ensure that business processes are operating effectively
B)implemented by the auditors to reduce the risk of misstatement due to error or fraud, and to ensure that business processes are operating effectively
C)the same as entity-level controls
D)tested by the internal auditors

Question

Quizplus · Accepted Answer

Transaction-level controls are implemented by businesses to reduce the risk of misstatement due to error or fraud, and to ensure that business processes are operating effectively. They focus on individual transactions and are designed to provide reasonable assurance that transactions are authorized, processed accurately, and recorded correctly. They are different from entity-level controls, which are overarching controls that affect the entire organization, and are tested by both internal and external auditors.

Transaction-Level Controls Are _______