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

---

Definitions:

Earth Layers

The division of Earth's structure into distinct layers, including the crust, mantle, outer core, and inner core, each with its unique composition and physical properties.

Bedrock

The solid rock layer beneath surface soils or sediments, serving as a foundation for the Earth's landscape.

Moss

A small, flowerless green plant that typically grows in dense green clumps or mats, often in damp or shady locations.

Lichen

Symbiotic organisms comprised of a fungus and a photosynthetic partner (usually an alga or cyanobacteria) living together in a mutually beneficial relationship.