The auditors are concerned about transactions that have been recorded in the journals (and subsequently in the ledgers) that are not valid—that is, a transaction is recorded, but it did not actually occur (e. g., a fraudulent overstatement of sales). Which procedure would be most effective?

Complete question:

Assume the following general flow of documents in an accounting system. Reply to the following question:

"Source Documents --> Journals --> Ledgers"

The auditors are concerned about source documents that reflect valid transactions that have not been recorded in the journals. Which procedure would be most effective?

(1) Trace from source documents to journals.

(2) Vouch from journals to source documents.

Either (1) or (2).

(1) Trace from source documents to journals.

Explanation:

Tracing is the method of tracking the transaction back to the source document in accounting records. Transaction failures are monitored and auditors are often used to ensure whether transactions have been properly reported.

Tracing relates to the compilation and the follow-up to the record of an financial transaction (the source document).

Tracing checks to see that the transactions that happened in the financial reports are registered. Therefore it would be most effective to translate "Trace documents from source into journals."

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough

answer; because many corporate watch groups will discover and publicize unethical behavior by suppliers, link it to the american company, and harm its reputation;