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What is audit evidence? What is the difference between sufficiency and appropriateness of evidence? What are the main types of audit procedures? Why is inquiry alone usually insufficient audit evidence? What factors affect the reliability of audit evidence? What is the difference between tests of controls and substantive procedures? What is external confirmation and when is it used? What is the difference between a test of details and a substantive analytical procedure? What are subsequent events and how does the auditor address them? What is a management representation letter and what is its purpose?
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What is vouching and what is tracing?

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Answer

Vouching starts from a recorded item in the accounts and follows it back to supporting documentation—testing for occurrence/existence (that recorded items are valid). Tracing starts from source documents forward to the records—testing for completeness (that all items are recorded). Direction of testing matters for the assertion addressed.
Vouching: ledger -> source document (existence/occurrence)
Tracing: source document -> ledger (completeness)
Real-world example To test completeness of sales, the auditor traces shipping documents forward to invoices and the sales ledger.

Common follow-ups: Which assertion does vouching test? | Which direction tests completeness?

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All 18 Audit Evidence & Procedures questions