The accumulation of source documents and records that allows the organisation to trace accounting entries back to their initiation is the:
A) audit trail.
B) outsourcing code.
C) initialisation procedure.
D) substantiation record.

Question

Quizplus · Accepted Answer

The accumulation of source documents and records that allows the organization to trace accounting entries back to their initiation is known as an audit trail. The audit trail is an essential tool for ensuring the accuracy and reliability of financial statements and for detecting errors, fraud, and other irregularities. It is created by collecting and organizing all relevant source documents and records, such as invoices, receipts, bank statements, and journal entries, in a systematic and organized manner.

The Accumulation of Source Documents and Records That Allows the Organisation