
Concept explainers
Concept Introduction:
Source documents - Source documents are the documentary evidences substantiating the records entered in the books of accounts of a business. They serve as the proof to validate that a particular transaction has happened. A valid source document contains the following details.
• Date
• Serial number/Document number
• Name & address of the vendor/supplier
• Name & address of the customer
• Nature of transaction
• Quantity
• Amount
• Authorized signatory
Source documents are the essential and primary source of audit evidence. A business entity shall place various controls to ensure the validity and authenticity of the source documents. For e.g. a business may have a practice of not accepting overwritten/damaged invoices.
To determine: The source documents from the list of items

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Chapter 2 Solutions
Fundamental Accounting Principles
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