To test for nonexistent transactions, the direction of audit testing should be from the:
A) externally generated documents.
B) ledger entries.
C) source documents.
D) journal entries.

Question

Quizplus · Accepted Answer

Testing for nonexistent transactions involves verifying that recorded transactions actually occurred, which requires starting from the journal entries and tracing back to the source documents.

To Test for Nonexistent Transactions, the Direction of Audit Testing