Which one of the following is considered effective documentation of an internal control system?
A)Electronically pre-numbered records.
B)A cathode ray screen used in input.
C)Verbal authorization.
D)The financial statements.

Question

Quizplus · Accepted Answer

Electronically pre-numbered records provide a clear audit trail and help in identifying any missing or duplicate transactions, thereby documenting the effectiveness of internal control system. Cathode ray screen used in input, verbal authorization or financial statements alone do not provide sufficient evidence of an effective internal control system.

Which One of the Following Is Considered Effective Documentation of an Internal