Lesson: Tracing and Vouching

In this lesson, Nick Palazzolo discusses tracing and vouching, two essential audit procedures, and provides a clear explanation of their differences. He creates a visualization to demonstrate how tracing involves starting with a transaction found in the ledger and searching for supporting documentation, while vouching requires beginning with documentation and locating the transaction amount within the accounting records. Several examples are provided to illustrate the importance of these procedures in various situations, including the revenue, expenditure, and cash cycles. Nick also explains the connection between tracing and vouching and the concept of completeness assertions.