One aspect of internal control requires companies to maintain adequate documentation and records. Which of the following statements is not correct with respect to an entity's maintenance of documents and records? A. Documents should be pre-numbered only if the client has no other means to maintain records of which documents have been used. B. Documents should be pre-numbered consecutively to facilitate control over missing documents. C. Documents should be sufficiently simple to ensure that they are clearly understood. D. Documents should be prepared at the time a transaction occurs or as soon thereafter as possible.
One aspect of internal control requires companies to maintain adequate documentation and records. Which of the following statements is not correct with respect to an entity's maintenance of documents and records? A. Documents should be pre-numbered only if the client has no other means to maintain records of which documents have been used. B. Documents should be pre-numbered consecutively to facilitate control over missing documents. C. Documents should be sufficiently simple to ensure that they are clearly understood. D. Documents should be prepared at the time a transaction occurs or as soon thereafter as possible.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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One aspect of internal control requires companies to maintain adequate documentation and records. Which of the following statements is not correct with respect to an entity's maintenance of documents and records?
A. Documents should be pre-numbered only if the client has no other means to maintain records of which documents have been used.
B. Documents should be pre-numbered consecutively to facilitate control over missing documents.
C. Documents should be sufficiently simple to ensure that they are clearly understood.
D. Documents should be prepared at the time a transaction occurs or as soon thereafter as possible.
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