Auditors can use documentary evidence for vouching or tracing. Several audit objectives are listed below, each of which may apply inspection of documentary evidence to accomplish the objective. For each item, indicate whether the specific audit procedure that could be applied would involve (1) vouching or (2) tracing.
(a) Determine whether credits in the accounts payable subsidiary ledger represent actual purchase transactions.
(b) Determine whether debits in the accounts receivable subsidiary ledger represent actual sales of goods or services.
(c) Determine whether all transactions in the sales journal represent shipments of goods.
(d) Determine that all purchase invoices have been recorded in the proper vendor account in the accounts payable subsidiary ledger.
(e) Determine that all shipments of goods have been recorded as credits in the perpetual inventory records.
(f) Determine the propriety of the recorded amount of newly-acquired machinery.
(g) Determine whether all cash collections are recorded in the cash receipts journal.
(h) Determine whether all recorded cash disbursement transactions are supported by an authorized purchase order.