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Friday, 23 September 2011

Explain the main or various objects of vouching

Vouching refers to the inspection of documentary evidence supporting the transactions.


1. Proper Evidence :-
The object of vouching is to see that proper evidence is signatures and stamps show that documents has been checked properly.

2. Accurate Amount :-
The object of vouching is to check that correct amount has been recorded in the entry or not. Vouching is very useful in this regard.

3. Checking Of Date :-
The date of vouchers should relate to the accounting period. The object of vouching is the checking of the right period.

4. Proper Authority :-
The object of vouching is to note that every transaction is made on behalf of the proper authority. No any transaction is acceptable without the signatures of the relevant officer.

5. Business Purchase :-
The purpose of vouching is to check that purchases relate to the business or not. If purchases are made for private purpose, these cannot be recovered as business purchase.

6. Proper Posting :-
Auditor can check the vouchers that postings of totals from journals to ledger are properly made or not. These are complete and correct.

7. Accuracy :-
The checking of arithmetical accuracy of books of accounts. The basic purpose of vouching to confirm the accuracy of books accounts. Auditor checks the totals, sub totals and posting.

8. Checking Of Fraud :-
The purpose of vouching to check that any payment is made by fraud. By vouching the entries frauds can be disclosed.

9. Checking Of Cash Book :-
The object of vouching is to check the correct receipts and payments. Auditor can check and determine that cash book is correct or not.

10. Casting Or Totals :-
The object of vouching is to check totals. Auditor calculate the totals and compares them with the books of accounts.

11. Cash In Hand :-
The object of vouching is to check that the cash shown in hand figures are correct or not. Auditor can count the cash and compare it with the cash book. To determine the accuracy test checking can be applied.

12. Capital And Revenue :-
The object of vouching is to examine the difference between revenue and capital expenses. The expenses related to one year are as revenue while others are called capital.

13. Checking Of Error :-
The purpose of vouching is to check that there is error in the books of accounts or not. The error can be detected by vouching. These can be due to negligence or over work.

14. Preparation Of Report :-
The object of vouching is to form an opinion for the issuance of report. After the examination auditor issues the report. It may be good or qualified.


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