Which document serves as Key Supporting Documentation (KSD) in an audit?

• A. Invoice records
• B. Financial reporting guidelines
• C. Material receipts
• D. Audit plans

Answer: (A)

The document that serves as Key Supporting Documentation (KSD) in an audit is typically invoice records. Invoice records provide a detailed account of transactions, including what goods or services were purchased, the amounts involved, and the dates of the transactions. This information is essential for auditors as it offers tangible proof that can confirm the existence and accuracy of financial transactions reported in financial statements.

Invoice records help auditors assess whether expenses are legitimate and appropriately classified, which can directly impact the accuracy and reliability of the financial statements being audited. The detailed nature of invoices allows auditors to trace transactions back to their source, ensuring that the organization's financial reports align with actual business activities.