Which of the following statements is not correct?
A)The audit trail is intended to verify the validity and accuracy of transaction recording.
B)The audit trail consists of records stored sequentially in an audit file.
C)The audit trail provides the means for locating and examining source documents.
D)The audit trail is created with document numbers and posting references.

Question

Quizplus · Accepted Answer

The audit trail does not necessarily consist of records stored sequentially in an audit file. It can be a process or a set of processes that provide a historical record of transactions to enable the reconstruction and examination of the financial information. The audit trail can be maintained in various formats, not just sequentially in an audit file.

Which of the Following Statements Is Not Correct