$6-42.$ Assume the following general flow of documents in an accounting system. Reply to the fol$-$

lowino mactione:

a$.$ The auditors are concerned about source documents that renect vanu wanoaumend that

have not been recorded in the journals. Which procedure would be most effective?

$(1)$ Trace from source documents to journals.

$(2)$ Vouch from journals to source documents.

$(3)$ Either $(1)$ or $(2).$

b$.$ The auditors are concerned about transactions that have been recorded in the journals $($and

subsequently in the ledgers$)$ that are not valid$-$that is$,$ a transaction is recorded, but it did

not actually occur $($e$.$g$.,$ a fraudulent overstatement of sales$).$ Which procedure would be

most effective?

$(1)$ Trace from source documents to journals.

$(2)$ Vouch from journals to source documents.

$(3)$ Either $(1)$ or $(2).$

c$.$ The auditors are concerned about transactions that have been recorded for improper

amounts. Which procedure would be most effective?

$(1)$ Trace from source documents to journals.

$(2)$ Vouch from journals to source documents.

$(3)$ Either $(1)$ or $(2).$

d$.$ Tracing from source documents to journals most directly tests:

$(1)$ Completeness $($understatements$).$

$(2)$ Existence $($overstatements$).$

e$.$ Vouching from journals $($or ledgers$)$ to source documents most directly tests:

$(1)$ Completeness $($understatements$).$

$(2)$ Existence $($overstatements$).$