An ability of an accounting system, to point out the use of resources in every step of production process is called ___________?
Correct answer: B. audit trails
- A. back-flush trails
- B. audit trails
- C. trigger trails
- D. lead manufacturing trailsHire An Accountant
Explanation
An audit trail allows transactions and resource usage to be traced through the stages of a production or accounting system. Backflush accounting is a production-costing method, not the name for this traceability feature.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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162 free Auditing MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
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