Which Statement Below Is True with Regards to an Audit

question 99

Multiple Choice

Which statement below is true with regards to an audit trail?

• A)An audit trail begins with the general journal.
• B)An audit trail provides the means to check the accuracy and validity of ledger postings.
• C)An audit trail is a summary of recorded transactions.
• D)An audit trail is automatically created in every computer-based information system.

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Definitions:

Production Volume

The quantity of products that a manufacturing system produces within a specific period of time.

Direct Labor Rate

The cost per hour for labor directly involved in producing goods or providing services, not including indirect costs like administration.

Participative Budgeting

A budgeting process where employees at all levels are involved in the decision-making process regarding the budget.

Capital Expenditures Budget

A financial plan for a company's planned investments in long-term assets and projects.