Auditing vouching vs tracing

Tracing is an audit procedure used by auditors to obtain audit evidence related to transactions in the financial statements of clients

Auditors use tracing to check the internal controls of the client for effectiveness, get an idea of the processes behind transactions and balances, and to verify the completeness assertion of transactions

Therefore, it helps auditors locate any understatements in the financial statements

On the other hand, vouching takes the opposite approach

Hence, it allows auditors to identify any overstatements in the financial statements

Tracing in auditing is a technique that auditors use to test the completeness assertion

By definition, vouching is an auditing technique that evaluates the recording of transactions in the record books of an entity with the help of available evidence

The transaction date, authorization, and client credentials are recorded properly

The voucher under examination belongs to the same accounting period