When an auditor selects transactions from the sales journal or ledger and then examines the underlying source documents, such as a shipping document and an invoice to the customer, this is known as ________.
A)tracing
B)vouching
C)examination
D)inspection of records

Question

Quizplus · Accepted Answer

Vouching involves selecting items from the accounting records and then looking at the supporting documents to verify the transaction's occurrence, accuracy, and completeness. In this case, examining shipping documents and invoices to verify sales transactions is an example of vouching.

When an Auditor Selects Transactions from the Sales Journal or Ledger