Question

Difference between Tracing and Vouching in audit evidence

Answer 1

Sometimes auditors might have concerns on the financial reports, that the companies might have over stated Assets, Revenues or Expenses to overcome this concerns Auditors might use one or both of this procedure of Tracing or Vouching

Tracing in Audit Evidence: Tracing from the Source/Supporting document like Invoices to where it ends on the financial statement. in other words starting with source document and finding how that source document is reflecting on the financial statement

Vouching in Audit Evidence: Vouch down the numbers in the financing statement like revenue or expense  to the source document, in other word we can say that Vouching involves finding the existing source documents for the reflected numbers on the financial statement