Why Does the Audit Need So Many Supporting Documents?

Supporting documents are an integral part of an audit as they provide evidence and validate the information presented in the financial statements.

Auditors rely on these documents to verify the transactions, balances and financial data recorded by the company.

These documents can include:

1. Invoices;
2. Receipts;
3. Contracts and agreements;
4. Bank statements;
5. Purchase orders;
6. Delivery orders;
7. Other records that support the financial transactions and balances reported in the financial statements.

By examining these supporting documents, auditors can:

1. Confirm the occurrence and accuracy of recorded transactions;
2. Verify the existence of assets and liabilities;
3. Evaluate the completeness of financial records;
4. Assess the valuation of financial transactions.

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