An auditor is testing the 'Accuracy' of a report generated by an IT system. They trace a sample of items from the report back to the source documents (invoices). This test primarily provides evidence for:

Answer options:

Completeness

Authorization

Existence / Validity

Timeliness

How to approach this question

Direction of testing matters! Source -> Report = Completeness (did everything get in?). Report -> Source = Existence (is this thing real?).

Full Answer

C.Existence / Validity✓ Correct

Tracing from the output (report) back to the input (source documents) verifies that the data in the report represents real, valid transactions (Existence/Validity). It checks for overstatement.

Common mistakes

Confusing Completeness (Source to Report) with Existence (Report to Source).

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