Essential to both management and auditors is a chain of evidence in the accounting system provided by coding, cross references, and documentation connecting account balances and other summary results with original data. This chain of evidence is referred to as the:
A) control trail.
B) vouching or tracing trail.
C) system reference trail.
D) audit or transaction trail.
E) accounting trail.

Question

Quizplus · Accepted Answer

The correct term is "audit or transaction trail." This refers to the process and documentation that connects the summary financial statements and account balances back to the original transactions and supporting data, ensuring that all financial information can be verified and traced for accuracy and integrity.

Essential to Both Management and Auditors Is a Chain of Evidence