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

Question

Quizplus · Accepted Answer

An audit trail is a record of all transactions and activities within an information system, and it provides a way to check the accuracy and validity of ledger postings by tracing the flow of transactions through the system. It does not begin with the general journal, as it encompasses all types of transactions and activities, not just those recorded in the general journal. An audit trail is not automatically created in every computer-based information system, although many systems are designed to generate an audit trail as part of their normal processing. It is not a summary of recorded transactions, but rather a detailed record of individual transactions and activities.

An Audit Trail