Tracing looks primarily for understatements, while vouching looks primarily for overstatements.

Name: Tracing looks primarily for understatements, while vouching looks primarily for overstatements.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Tracing is used to verify that transactions have been recorded correctly in the financial statements, ensuring no understatements of revenues or assets. Vouching, on the other hand, is used to check the authenticity of the transactions recorded, aiming to detect any overstatements of revenues or assets.

Tracing Looks Primarily for Understatements, While Vouching Looks Primarily for Overstatements