Question

If the audit objective of a test of details is to detect overstatements of sales, the auditor should vouch transactions from the:

A)Source documents to the accounting records.
B)Accounting records to the source documents.
C)General ledger to the financial statements.
D)Financial statements to the general ledger.

Answer 1

The correct answer is B) Accounting records to the source documents. Vouching involves examining the supporting documentation for the recorded transactions to ensure that they have actually occurred and are accurately reflected in the accounting records. Option B

Step-by-step explanation:

When the audit objective is to detect overstatements of sales, the auditor should vouch transactions from the accounting records to the source documents (such as sales invoices, receipts, or contracts). By doing so, the auditor can verify the existence, accuracy, and completeness of the recorded sales transactions.

Vouching involves examining the supporting documentation for the recorded transactions to ensure that they have actually occurred and are accurately reflected in the accounting records. Option b