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What are the purposes of the audit procedures of (a) tracing a sample of journal entries...

What are the purposes of the audit procedures of (a) tracing a sample of journal entries forward to the ledgers and (b) vouching a sample of ledger entries back to the journals?

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Answer #1

Answer a

Tracing a sample of Journal entries is traced for completeness of Journal entries being forwarded to the ledgers. This audit procedures ensures the recording of the source documents are transferred correctly to the ledgers.

Answer b

This Audit procedure is performed to existence or occurrence of transaction recorded in ledger. An audit assertion is followed while performing this test on the financial statement back to its source document. This procedure is reverse checking of Journal from the taking sample of Ledgers.

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