What Is the Difference Between Trace and Vouch

The key difference is that when you trace, you start with the source document and locate the transaction in the financial statements. When you vouch, you start with the financial statements and trace the transaction details to the source document.

What does trace mean in auditing?

What is Tracing in Auditing? Tracing is the process of following a transaction in the accounting records back to the source document.

What does vouching test for?

Vouching is defined as the “verification of entries in the books of account by examination of documentary evidence or vouchers, such as invoices, debit and credit notes, statements, receipts, etc.