Transactions are used by auditors to verify account balances and internal controls.

Question

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Transactions are an essential component of auditing as they provide evidence for the accuracy and completeness of account balances. Auditors use transaction testing to verify the existence, completeness, and accuracy of transactions, as well as to evaluate internal controls over financial reporting. By examining transactions, auditors can identify errors, fraud, and other irregularities in the financial statements, which helps them to form an opinion on the fairness of the financial statements.

Transactions Are Used by Auditors to Verify Account Balances and Internal