Essential to Both Management and Auditors Is a Chain of Evidence

question 13

Multiple Choice

Essential to both management and auditors is a chain of evidence in the accounting system provided by coding, cross references, and documentation connecting account balances and other summary results with original data. This chain of evidence is referred to as the:

• A) control trail.
• B) audit trail.
• C) tracing trail.
• D) accounting trail.

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Definitions:

Assembling Process

The phase in manufacturing where components are put together to form a finished product.

Packaging Process

The operations involved in designing and producing packages for products, aimed at protecting and presenting the product effectively.

Non-value Added Activities

Tasks or processes that do not add any direct value or benefit to the product or service from the perspective of the customer.

Electrical Component

A device that participates in an electrical circuit, serving a specific function such as resistors or capacitors.