When Auditors Use Documentation to Support Recorded Transactions and Amounts

question 99

Multiple Choice

When auditors use documentation to support recorded transactions and amounts, the process is usually called

• A) tracing.
• B) confirmations.
• C) vouching.
• D) reperformance.

---

Definitions:

Alpha

A measure of the active return on an investment, gauging how much a portfolio or fund outperforms or underperforms its benchmark index.

Hedge Fund

An investment fund that employs various strategies to produce high returns, including leverage, short-selling, and derivatives, accessible typically to wealthy investors.

Incentive Bonus

A form of additional compensation paid to an employee as a reward for achieving certain goals or exceptional performance.

Gross Return

The total return on an investment before any deductions for fees or expenses.