John is auditing MegaCorp.He finds an accounts payable for 1,000 reams of photocopy paper.He checks to make sure the paper actually arrived and that the receiving department had signed and dated the invoice.He also checks the original purchase order to make sure the purchase was properly authorized.This illustrates:
A) tracing.
B) vouching.
C) following.
D) monitoring.

Question

Quizplus · Accepted Answer

Vouching involves checking the authenticity of transactions by verifying the supporting documents, such as invoices and purchase orders, which is what John is doing.

John Is Auditing MegaCorp