Final answer:
In audit procedures, 'Examine' means inspecting records in detail, 'Scan' is a rapid review, 'Compute' involves verifying calculations, 'Foot' is totaling columns, 'Compare' is evaluating records against documents, 'Count' refers to tallying items like inventory, and 'Vouch' involves substantiating transactions with documentation.
Step-by-step explanation:
The terms commonly used in audit procedures can be defined as follows:
- Examine - To inspect or investigate something in detail. In auditing, it refers to the detailed inspection of records and documents to verify their accuracy and completeness.
- Scan - To look over documents or figures rapidly in order to identify significant details or anomalies without going into a detailed examination.
- Compute - To calculate or reckon a figure. In auditing, it is to verify the accuracy of mathematical calculations within accounting records.
- Foot - To total the columns of numbers in a page or a ledger to ensure that the column totals are accurate.
- Compare - To evaluate and contrast two or more items to identify similarities or differences. Auditors often compare accounting records against supporting documents.
- Count - To tally or enumerate items, often used in the context of inventory to confirm the actual quantity of stock.
- Vouch - To examine supporting documents and records to substantiate transactions and ensure that transactions are valid, correctly recorded, and complete.