In determining whether transactions have been recorded, the direction of the audit testing should start from the:
A)General ledger balances.
B)Adjusted trial balance.
C)Original source documents.
D)General journal entries.

Question

Quizplus · Accepted Answer

The most reliable starting point for determining whether transactions have been recorded is the original source documents. These documents are the primary evidence of transactions and provide a basis for subsequent recording in the accounting system. By tracing transactions from the source documents to the accounting records, auditors can verify that all relevant transactions have been properly recorded. Therefore, the direction of audit testing should start from the original source documents.

In Determining Whether Transactions Have Been Recorded, the Direction of the Audit