What is a primary focus of the inspection of documentation supporting transactions?

The primary focus of inspecting documentation supporting transactions is to verify authorization. This ensures that transactions have been approved by the appropriate individuals or entities, confirming compliance with established policies and regulations. Proper authorization is vital for maintaining internal controls within an organization, as it helps prevent errors, fraud, and misappropriation of assets.

When auditors inspect documentation, they look for evidence that the transactions were authorized at the appropriate level within the organization. For instance, invoices should reflect the necessary approvals before payment is processed. This verification process helps build confidence in the accuracy and legitimacy of the financial statements.

While ensuring physical existence, assessing fair value, and proper classification are also important aspects of audit procedures, they are not the primary focus during the inspection of transaction documentation. Physical existence relates more to assets rather than transaction documentation, while fair value and classification pertain to the accurate presentation of financial information rather than the authorization of transactions themselves.