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) audit trail.
C) tracing trail.
D) accounting trail.

Question

Quizplus · Accepted Answer

The term "audit trail" refers to the systematic record of a sequence of events or processes that provides a documented history of transactions. It enables the tracing of financial data from the general ledger to the source documents, facilitating the verification of the accuracy and integrity of financial records and transactions by both management and auditors.

Essential to Both Management and Auditors Is a Chain of Evidence