Audit Trails

question 21

Multiple Choice

Audit trails:

• A)Can proceed only from the source document to the journal entry.
• B)Can proceed only from the journal entry to the source document.
• C)Is only utilized by the CPA auditors.
• D)Can be from the source document to the journal entry or from the journal entry to the source document.

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Definitions:

Budgeting

The process of creating a plan to spend your money, outlining how much money will be earned and how it will be spent.

Static Planning Budget

A budget based on a fixed level of activity, not adjusted for actual activity levels.

Customers Served

The number of individual customers or clients that a business has provided goods or services to during a specific period.

Total Expenses

Represents the sum of all costs and expenses incurred by a business in a specific period, including both operational and non-operational items.