Which statement below is true with regards to an audit trail?
A)An audit trail begins with the general journal.
B)An audit trail provides the means to check the accuracy and validity of ledger postings.
C)An audit trail is a summary of recorded transactions.
D)An audit trail is automatically created in every computer-based information system.

Question

Quizplus · Accepted Answer

An audit trail provides the means to check the accuracy and validity of ledger postings. It is a chronological record of all transactions that show how a particular transaction was processed and how the resulting account balance was derived. The audit trail can be documented on paper or electronically and should include source documents, calculations, adjustments, and other relevant information. It is important in detecting errors or fraud and in ensuring compliance with regulations and standards.

Which Statement Below Is True with Regards to an Audit