When Auditors Start with the Underlying Source Documents and Work

question 36

Multiple Choice

When auditors start with the underlying source documents and work forward to follow the transaction through to recording in the journal and ledger, this is referred to as ________.

• A)audit procedures
• B)substantive procedures
• C)tracing
• D)vouching

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Definitions:

Institutional Change

Significant alterations in the structure, policies, or practices of an organization or system.

Disadvantaged Group

A social group that experiences a lower standard of living or lesser opportunities than the majority of the population.

Power

The capacity or ability to direct or influence the behavior of others or the course of events.

Resources

Assets, materials, or other assets that are useful or necessary for a particular purpose, including financial, natural, or human resources.