When the auditor develops supporting evidence for amounts posted to account balances with documentary evidence, that process is called:
A)inquiry.
B)confirmation.
C)vouching.
D)physical examination.

Question

Quizplus · Accepted Answer

Vouching involves examining source documents, such as bills or invoices, to support the amounts recorded in account balances. In contrast, inquiry involves asking questions of management or entity personnel, confirmation involves obtaining written confirmation from external parties, and physical examination involves visually inspecting tangible assets or inventory.

When the Auditor Develops Supporting Evidence for Amounts Posted to Account