When an auditor decides to follow a particular transaction from initiation through where it is recorded in the financial records, this is known as ________.
A)reperformance
B)walkthrough
C)recalculation
D)vouching

Question

Quizplus · Accepted Answer

Following a particular transaction from initiation through where it is recorded in the financial records is known as a walkthrough. It helps the auditor gain an understanding of the client's internal control system and identify potential areas of risk. The other options (A, C, and D) refer to specific audit procedures that may be performed during the audit but do not describe the process of a walkthrough.

When an Auditor Decides to Follow a Particular Transaction from Initiation