Vouching

Q.1 What do you mean by vouching? What are its key objectives?
Ans Vouching is process in which entries recorded in book are checked with their relative documentary evidences.
“Vouching means testing the truth of items appearing in the books of original entry” (J.R.BATLIHOR)
“Vouching is a technical term which refers to the inspection of documentary evidences supporting Transactions” (Arnold A Irish)
Vouching is considered as an essence of audit. It is most important aspect of audit work in which all the entries in original books are checked will reference to their supporting documentary evidences. It this work is done intelligently/carefully, around 50% of audit work is deemed to have been completed.
VOUCHERS:-
Vouchers are of two types :-
(i) Original Voucher -: Original written documentary evidence such as invoice received from supplier is original voucher for credit purchase.(ii) Collateral or supplementary voucher: - There are vouchers which further confirm the correctness of original voucher e.g. transportation, /loading,/unloading charges are collateral vouchers which further justify the truthness of original voucher of purchases i.e. invoice.
Auditor in the process of vouching should see both the vouchers i.e. original as well as collateral
If collateral vouchers are not there, doubt is created about the correctness/truthness of original voucher.
Key objects of Vouching
To ensure that all vouchers are:-
- Properly authorized by competent person/authority
- Properly recorded in relevant book, in right head and right side
- Vouchers are Genuine/ bonafide which means that :- They relate to business Relate to accounting /audit period They are on printed form Amount in words and figures reconciles Calculation in voucher is correct.


Q.2 What key points should be kept in mind which vouching?
Ans Main point to be kept in mind while vouching :
1. All vouchers are serially numbered and are properly arranged in a file.
2. Date of voucher and date of entry in books to be checked.
3. Vouchers checked must be initialed by auditor to avoid there re-production.
4. Vouchers in the name of officers/staff should be minutely checked.
5. Correct recording of voucher in capital and revenue head should be seen.
6. Duplicate vouchers should be checked carefully
7. Missing vouchers should be noted
8. Receipted invoices should not be treated as vouchers.
9. Auditor should not take the help of staff of organization while checking receipt books

10. In the vouchers pertaining to rent /taxes, insurance etc., period of payment should be seen as amount paid may be pre-paid or if may be out standing on the closing date i.e. 31st March.
All above points are to be kept in mind while vouching original books of accounts such cash book, purchase book, sales book, and other subsidiary book