Vouching vs Tracing
Lesson:
Vouching and tracing are two techniques for examining information when auditing.
- Vouching - Going from the financial ledger and try to find the source document. This answers the question 'Is the recorded information real?'
- Tracing - Going from the source document to the financial ledger This answers the question 'Is the information we have recorded?'
You're explaining your recent activities during an audit.
You've been provided with the following information:
- You sought out the purchase order.
Is this an example of tracing or vouching?
Answer:
- This is an example of vouching.