Which record-keeping practice most supports accountability for disbursements?

• A. Relying on a vendor's statement as the primary record.
• B. Maintaining a complete audit trail with documentation of approvals and verification.
• C. Filing records only at year-end.
• D. Keeping receipts but not linking to approvals.

Answer: (B)

Maintaining a complete audit trail with documentation of approvals and verification provides a verifiable chain from request to payment, so every disbursement can be traced back to its authorized source. This creates accountability by showing who approved, who processed, and how the funds were verified and recorded, making it possible to detect errors or fraud and to hold individuals responsible if something goes wrong.

Relying on a vendor’s statement as the primary record lacks independent verification and can lead to misstatements or improper disbursements. Filing records only at year-end prevents timely oversight and makes it hard to reconstruct transactions. Keeping receipts without linking them to approvals breaks the clear chain of authority, reducing traceability and accountability.