Which control practice helps ensure the accuracy and completeness of transactions by linking related documents?

Which control practice helps ensure the accuracy and completeness of transactions by linking related documents?

• A. Pairing with unrelated files
• B. Deleting older records
• C. Cross-referencing of documents
• D. Reducing documentation to a single form

Answer: (C)

Cross-referencing of documents links related records so a transaction can be traced from its source documents through to the accounting records. This creates an audit trail that makes it possible to verify that every step happened correctly—authorization, receipt, recording, and payment—reducing the chance of errors and omissions. For example, tying together the purchase order, receiving report, invoice, and payment receipt allows you to see that goods were authorized, received, billed, and paid in full. Other options undermine traceability: pairing with unrelated files creates confusion and breaks the connection between documents; deleting older records erases important history needed for audits and reconciliation; and reducing documentation to a single form removes the detail and linkage necessary to verify a transaction’s complete path.

Cross-referencing of documents links related records so a transaction can be traced from its source documents through to the accounting records. This creates an audit trail that makes it possible to verify that every step happened correctly—authorization, receipt, recording, and payment—reducing the chance of errors and omissions. For example, tying together the purchase order, receiving report, invoice, and payment receipt allows you to see that goods were authorized, received, billed, and paid in full.

Other options undermine traceability: pairing with unrelated files creates confusion and breaks the connection between documents; deleting older records erases important history needed for audits and reconciliation; and reducing documentation to a single form removes the detail and linkage necessary to verify a transaction’s complete path.