The primary purpose of vouching is to ensure that
A) the balances or transactions are not understated.
B) sufficient information is disclosed in the notes to the financial statements.
C) the balances or transactions are not overstated.
D) all transactions have been recorded.

Question

Quizplus · Accepted Answer

The primary purpose of vouching is to ensure that the balances or transactions are not overstated. Vouching involves the examination of supportive evidence such as bills, receipts, and other documents to verify the existence, ownership, and validity of transactions. By doing so, auditors can confirm that the recorded balances or transactions are not exaggerated or inflated. Additionally, vouching also helps to detect errors or frauds that may result in overstated balances or transactions.

The Primary Purpose of Vouching Is to Ensure That