What is the procedure referred to when the auditor examines the client's documents and records to substantiate the information in the financial statements?
A) confirmation
B) inquiry
C) physical examination
D) vouching

Question

Quizplus · Accepted Answer

Vouching is the procedure referred to when the auditor examines the client's documents and records to substantiate the information in the financial statements. This involves tracing transactions from their original source documents to the financial statements, ensuring that the information is accurate and complete. Confirmation involves requesting independent verification of information from third parties, inquiry involves asking questions of management or employees, and physical examination involves physically inspecting assets or inventory.

What Is the Procedure Referred to When the Auditor Examines