Auditing Chapter 6: Vouching


Vouching: “Vouching means testing the truth of items appearing in the books of original entry with documentary evidence”

 Importance of vouching:

Armitage V. brewer and Knot (1932), Fraud committed by the clients clerks were undetected, the auditors held liable for careless vouching.

The success of audit depends on vouching, vouching is the backbone of auditing.

Vouching and Routine checking;

Routine checking involves checking of cash, carry forward, posting to ledger and transfer of balance.

Different ticks are used.

Vouching is broader and includes routine checking, Routine checking is mechanical and vouching is intelligent checking.

Types of Voucher:

1.Primary Vouchers: written evidence in original eg, cash memo, purchase invoice

2.Collateral Vouchers; Carbon copies, counterfoils etc

Objects of Vouching;

1.All transactions are recorded properly.

2.All transactions are supported with documentary evidence

3.All entries are legally valid

4.To verify that no fraud or error occurs

5.Vouchers are processed carefully through various stages of internal audit

6.Every transaction is authenticated by authorized personnel

7.Distinction between capital and revenue items

8. Mathematical accuracy

1 thought on “Auditing Chapter 6: Vouching

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s