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CS Professional · Internal and Forensic Audit · Internal Audit Tools and Techniques

An internal auditor at Sundaram Pharma Ltd selects a purchase invoice and traces it back to the purchase order, goods received note and the supplier's quotation to check that the purchase was properly authorised. This technique is best described as:

This is vouching, a form of documentary examination. The auditor takes a recorded purchase and checks it against supporting documents like the order, goods received note and quotation to confirm authorisation and validity. It is not third-party confirmation, analytical review or observation.

  1. AVouching of the recorded transaction to supporting documentsCorrect
  2. BConfirmation from a third party
  3. CAnalytical procedure on trend data
  4. DObservation of a process being performed

Explanation

Starting from a recorded transaction and checking it against underlying documents such as the order, GRN and quotation is vouching or documentary examination. No external party is asked to respond, so it is not confirmation. No ratios or trends are used, and no live process is watched.

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