The cycle approach to auditing
A) ties to the way transactions are recorded in journals and then summarized in the general ledger and financial statements.
B) cannot combine transactions recorded in different journals with the general ledger balances that result from those transactions.
C) is the only way of segmenting an audit.
D) assumes that each account has two or more cycles associated with it.

Question

Quizplus · Accepted Answer

The cycle approach to auditing ties to the way transactions are recorded in journals and then summarized in the general ledger and financial statements. It is a method used to audit the accounting information by breaking down financial transactions into separate cycles.

The Cycle Approach to Auditing