The existence of verifiable information about the accuracy of accounting records is called a(n):
A)Audit trail
B)Internal control
C)Risk assessment
D)Supporting documentation

Question

Quizplus · Accepted Answer

An audit trail is a series of documented evidence that enables an auditor to verify the accuracy and completeness of accounting records. It also helps in detecting any fraudulent or illegal activity. An audit trail includes supporting documentation, such as invoices, receipts, bank statements, and other records that substantiate the transactions recorded in the accounting system. Internal control and risk assessment are essential components of an audit trail, but they are not the same as an audit trail. Supporting documentation is also part of an audit trail, but it does not encompass the entire scope of the concept. Therefore, the best choice is A) Audit trail.

The Existence of Verifiable Information About the Accuracy of Accounting