A transaction walk-through involves:
A) touring the client's plant and operations.
B) reviewing the process of recording transactions.
C) reviewing and evaluating the client's accounting processes.
D) tracing a sample of documents through the accounting process.

Question

Quizplus · Accepted Answer

A transaction walk-through involves tracing a sample of documents through the accounting process, following them from initiation to reporting in order to identify weaknesses and potential errors in the system. This helps auditors gain a better understanding of the client's accounting processes and identify any areas where improvements may be needed. Choices A and C may be part of the overall audit process, but they are not specifically related to a transaction walk-through. Choice B is too general and does not directly address the purpose of a transaction walk-through.

A Transaction Walk-Through Involves