Regarding a Company's Audit Trail, Which of the Following Statements

question 48

Multiple Choice

Regarding a company's audit trail, which of the following statements is true?

• A)Because of the complexities involved in establishing an audit trail, a good audit trail normally makes it more difficult for an individual to follow the flow of a company's business transactions through the company's information system
• B)In actuality, the audit trail established within a company's information system is an unimportant element of the company's internal control system
• C)When a company's audit trail becomes more difficult to follow, this causes an increase in the risk of errors or irregularities taking place in the processing of accounting transactions and not being detected
• D)A company's policies and procedures manual should not be part of its audit trail since confidential information is included within this manual

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Definitions:

IGE Score

An indicator used in economics to measure intergenerational mobility, reflecting the extent to which a parent’s income can predict their child’s income in adulthood.

College Instructor

An educator or academic who teaches courses at a college or university level, often focusing on a specific subject area or field of study.

Intergenerational Mobility

The movement or changes in social status and economic position that occur from one generation to the next within a family or community.

Upper Middle Class

A socioeconomic group that is above the middle class, characterized by higher income, education, and professional jobs.