What Are Some Typical Types of Evidence That May Be

question 32

Essay

What are some typical types of evidence that may be collected in testing a client's internal controls?

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Definitions:

Sales Transactions

Financial exchanges involving the transfer of goods or services from seller to buyer for payment.

Journal Entries

Records of financial transactions in the accounting system in the order in which they occur.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments, used to verify the equality of debits and credits and prepare financial statements.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts, preparing the company's books for the next period.