In automated accounting, audit trails are typically backed up on a server. Which statement is true about audit trails?

• A. On a CD or disk
• B. On a server
• C. In paper form
• D. Never backed up

Answer: (B)

Audit trails record who did what and when in the accounting system, and they must be preserved and accessible for review. Backing them up on a server provides centralized, secure storage with proper access controls and encryption, making it easier to retrieve during audits and to protect against tampering or data loss. Regular server backups support disaster recovery and data integrity, so the trail remains intact even if individual workstations fail or files become corrupted. Storing on a CD or disk is outdated and hard to manage at scale, keeping paper copies is impractical and fragile, and claiming they’re never backed up would violate typical controls and compliance needs. So backing up audit trails on a server reflects standard practice for reliability and security.