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CMA Intermediate · Corporate Accounting and Auditing · Application of Technology in Audit and Audit Trail

In the context of the accounting software used by a company, an 'audit trail' (edit log) primarily refers to which of the following?

An audit trail is a system-generated record of each entry and change in the books of account, showing who made it and when. It allows changes to be traced and tampering detected. The other options concern audit fees, audit opinion or AGM attendance, not logging of changes.

  1. AA record of each change made to the books of account, showing who made it and whenCorrect
  2. BA summary of the company's annual audit fees and auditor appointments
  3. CThe auditor's final opinion on the true and fair view of the financial statements
  4. DA list of all shareholders who attended the annual general meeting

Explanation

An audit trail or edit log is a chronological, system-generated record of every transaction and change made in the accounting software, including the user and the date and time. The other options describe audit fees, the audit report and AGM attendance, which are unrelated to the logging of changes.

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