Tracing is a specific type of document inspection whereby the auditor verifies whether the document:
A) has been posted to the relevant accounting records.
B) is supported by appropriate source documents.
C) is mathematically accurate.
D) proves ownership of the underlying asset or liability.

Question

Quizplus · Accepted Answer

Tracing involves verifying whether a document has been correctly posted to the relevant accounting records. It does not involve checking for mathematical accuracy or ownership of assets or liabilities, and supporting source documents may be verified through other procedures such as vouching.

Tracing Is a Specific Type of Document Inspection Whereby the Auditor