What Are Some Typical Types of Evidence That May Be

question 15

Essay

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

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Definitions:

Ledger Accounts

Financial records within a ledger that summarize the transactions related to a company's assets, liabilities, equity, revenues, and expenses.

Trial Balance

A financial spreadsheet where the totals from all accounts are gathered into columns for debits and credits, serving to verify the mathematical accuracy of a firm's accounting records.

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, including assets, liabilities, and equity.

Ledger

A comprehensive collection of all accounts used by an organization, showing the changes made to each account due to transactions, and the current balance.