Vouching vs. Tracing

Auditors frequently use vouching and tracing during the course of an audit. Both vouching and tracing involve the auditor examining documents, but they differ when it comes to the direction of testing. With vouching, the auditor starts with a journal entry or ledger balance and works back to the original source documents. This tests existence or occurrence (e.g., did the sale actually occur?). With tracing, the auditor starts with the original source documents and works forward to see whether the transaction was properly recorded in the accounting system. This tests completeness (e.g., was the sale recorded?).—
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