Define or what is vouching and discuss the objects, techniques and principles of vouching

VOUCHING :-
Meaning :-
It means to test the truth of items appearing in the books of original entry.

Definition :- "A careful examination of all original evidence such as invoice receipt of correspondence minutes contracts etc."

Vouching is very useful in proving the accuracy of the entries in the books of accounts. It also indicates about that transaction which is omitted from the books of account.

VOUCHER :-
A voucher is a documentary evidence in support of a transaction in the books of account.


OBJECT or IMPORTANCE OF VOUCHING :-
Vouching is called the essence of auditing, so audit is not possible without vouching. The object of vouching is to find out the accuracy of the entries appearing in die books of accounts and detect that no entry has been omitted from the books of account.


PRINCIPLES or TECHNIQUES OF VOUCHING :-
At the time of vouching auditor should keep in view the following important principles in his mind :

1. Arranged Vouchers :-
First of all auditor should check all the vouchers provided by the client are properly arranged. These are in the same order as the entries are made in the books.

2. Checking Of Date :-
The auditor should compare the date of the voucher with he date recorded in the cash book.

3. Compare The Words And Figures :-
The auditor should satisfy himself amount written numbered consecutively. All the vouchers should be properly filed. On the vouchers, its figures and words are same or not.

4. Checking Of Authority :-
The auditor should examine that all the vouchers are passed by the authorized officer. If the voucher is passed by unauthorized person it will not be correct.

5. Cutting Or Change :-
If there is any cutting or change on the receipts and vouchers figures it should be signed by the authorized officer. The auditor should satisfy himself by inquiring about it.

6. Transaction Must Relate To Business :-
The auditor should carefully examine that the entries must relate to the business.

7. Case Of Personal Vouchers :-
The auditor should not accept the voucher in personal name. There is a chance that an officer of the company has purchased any item in his personal capacity.

8. Checking Of Account Head :-
Auditor must be satisfied about the head of account on which cash is deposited and drawn. He should examine the documentary evidence in this regard.

9. Revenue Stamp :-
The auditor should also check that voucher bears a required revenue stamp or not?

10. Case Of Cancelled Voucher :-
The auditor should not accept the cancelled voucher. Because it has already served the purpose of payment. There will be a danger of double payment if it is accepted.

11. Important Notes :-
The auditor should take some important notes about those items which need further evidence or explanation.

12. Payment :-
The auditor should check that whether payment is described partially or for complete transaction of sale.

13. Agreements :-
These provide the basic information to the auditor. He should check the agreements, correspondence and other relevant papers.

14. Printer Vouchers :-
Printer vouchers are considered true and these are legally acceptable. If these are not printed then these are useless.

15. List Of Missing Vouchers :-
Auditor should prepare the list of missing vouchers. This list will be helpful in detecting the fraud and errors.

2 comments:

Anonymous said...

it was very helpfull thnku soo much

Anonymous said...

It gives basic knowledge.Thank you.

Define the concepts of 'evaluation', 'measurement' and 'assessment' And also explain the differences among them with examples

The concept of educational evaluation is not a discovery of the present age. Evaluation is a reality of our daily life. Every individual...