In determining whether transactions have been recorded, the direction of the audit testing should be from the:
A) general ledger balances.
B) adjusted trial balance.
C) original source documents.
D) general journal entries.

Question

Quizplus · Accepted Answer

The most reliable way to determine whether transactions have been recorded is to trace them back to the original source documents, such as invoices or receipts. Therefore, the direction of audit testing should begin with the source documents and follow the trail to the general ledger balances.

In Determining Whether Transactions Have Been Recorded, the Direction of the Audit