Asked by Jason Harris on Apr 29, 2024
Verified
All market participants must keep detailed records of every aspect of every trade.What is this called?
A) Paper trail
B) Audit trail
C) Trade record
D) Prospectus
Audit Trail
A record that traces the detailed financial transactions of an entity to its original source for verification purposes.
Trade Record
Documentation or data that keeps track of all trading activities, including purchases and sales of securities.
Paper Trail
A series of documents or records that provide evidence of a person's or organization's transactions, actions, or history.
- Explain the importance of detailed record-keeping in financial transactions and the concept of audit trails.
Verified Answer
KC
Khushboo ChauhanMay 02, 2024
Final Answer :
B
Explanation :
An audit trail is a step-by-step record by which accounting or trade data can be traced to its source. It is used to ensure all transactions are recorded accurately and are legitimate, facilitating financial audits and compliance with regulations.
Learning Objectives
- Explain the importance of detailed record-keeping in financial transactions and the concept of audit trails.