Question

when a sample of customer accounts receivable is selected to vouch debits for evidence of existence, the auditors will vouch for them to which other items?

Answer 1

Auditors vouch for customer accounts receivable debits to supporting documents, which include original sales invoices, shipping documents, and customer orders, to verify existence and accuracy.

Step-by-step explanation:

When auditors select a sample of customer accounts receivable to vouch debits for evidence of existence, they typically vouch for the debits to supporting documents. This process involves checking the selected receivables against the original sales invoices, shipping documents, and customer orders to confirm that the sales transactions actually occurred and are recorded accurately.

By examining this documentation, auditors can ascertain the existence and accuracy of the recorded accounts receivable as of the balance sheet date.

Further, auditors may also trace the transactions through the accounting system to ensure that they were properly authorized under the company's internal control procedures and that they have been recorded in the proper accounting period. The auditing process must ensure these transactions are reflected properly for a fair presentation of the financial statements.