Discuss the testing activities of vouching and tracing
1.Audit testing relates to the completeness and occurrence assertions. Discuss the testing activities of vouching and tracing as they relate to either the occurrence or the completeness assertion. Provide an example of a vouching audit step and a tracing audit step and explain which provides evidence as to the occurrence and which provides evidence for the completeness assertion.
2.Auditors are required to document their understanding of internal control. Procedure’s manuals, organization charts, internal control questionnaires, and flowcharts are reviewed during this documentation process. Consider each of these information sources and decide which you believe provides the best detailed information to help create the required documentation. Defend your choice with examples.
3.Attribute Sampling and Monetary-Unit Sampling are two sampling techniques designed to help an auditor test controls. Discuss how each are different and provide an example of how you would decide which one to use if you were auditing a company’s credit-check control for customer orders. Defend which technique, in your opinion, is more reliable. Provide examples to support your opinion.