A transaction-level internal control activity is best described as
A) An action taken by auditors to obtain evidence.
B) An action taken by client personnel for the purpose of preventing, detecting, and correcting errors and frauds in transactions to eliminate or mitigate risks identified by the company.
C) A method for recording, summarizing, and reporting financial information.
D) The functioning of the board of directors in support of its audit committee.

Question

Quizplus · Accepted Answer

A transaction-level internal control activity is an action taken by client personnel for the purpose of preventing, detecting, and correcting errors and frauds in transactions to eliminate or mitigate risks identified by the company. These activities are designed to ensure that transactions are accurately recorded, processed, and reported in the financial statements. Auditors may rely on these activities as evidence, but they are ultimately the responsibility of the client's management and employees.

A Transaction-Level Internal Control Activity Is Best Described as