Which statement is true concerning the documentation of internal control?
A) Documentation should be sufficient to support the design and operating effectiveness of internal controls.
B) Documentation requirements are standardized by the PCAOB.
C) Documentation of disbursements require paper and electronic documentation.
D) Documentation of all transaction controls should be tested on an annual basis.

Question

Quizplus · Accepted Answer

Documentation of internal control should be sufficient enough to support the design and operating effectiveness of internal controls. This means that the documentation should provide evidence of the design of the control activities and how they are being applied in practice. However, there is no requirement for annual testing of documentation or standardization by the PCAOB, and not all disbursements require both paper and electronic documentation.

Which Statement Is True Concerning the Documentation of Internal Control