Tracing back to individual business events that have been aggregated into account balances is done by means of a(n):
A) electronic reference service
B) general ledger account
C) audit trail
D) data dictionary

Question

Quizplus · Accepted Answer

Tracing back to individual business events that have been aggregated into account balances is done by means of an audit trail, which is a chronological record that traces the sequence of activities and transactions from the original source of the transaction through to its final presentation in the financial statements. The audit trail provides a means of verifying the accuracy, completeness, and validity of the information contained in the financial statements, and is an essential part of the audit process. Electronic reference services, general ledger accounts, and data dictionaries may be useful in providing additional information or context, but they are not specifically designed to trace back to individual business events.

Tracing Back to Individual Business Events That Have Been Aggregated