When the auditor examines the client's documents and records to support recorded transactions or amounts,it is commonly referred to as
A)inquiry.
B)confirmation.
C)vouching.
D)physical examination.

Question

Quizplus · Accepted Answer

Vouching is the process of examining client's documents and records to support the recorded transactions or amounts. The auditor would follow the trail from the financial statement line item back to the underlying documents to ensure the recorded transactions have proper authorization, valid and supported by sufficient evidence. It is one of the primary procedures performed during the audit to ensure the accuracy and completeness of the financial statements. Therefore, option C) vouching is the best choice.

When the Auditor Examines the Client's Documents and Records to Support