Documents and Records Are an Important Control Activity

question 14

Multiple Choice

Documents and records are an important control activity. Which of the following statements concerning this activity is true?

• A) They serve as excellent preventive controls.
• B) Adequate accountability can exist even in their absence.
• C) The entire accounting system serves as a documentary control.
• D) They are poor detective controls.

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Definitions:

Scientific Method

A systematic approach to research where a problem is identified, relevant data is gathered, a hypothesis is formulated from these data, and the hypothesis is empirically tested.

Hypothesis

A specific prediction that can be tested, and proved or disproved.

Refuting

The act of disproving a statement or argument by presenting evidence or logical reasoning.

Empirical Evidence

Refers to the information obtained through observation and documentation of patterns and behaviors rather than theories or beliefs.