Refusal to accept vouchers

An auditor may refuse to accept vouchers in the following

circumstances:

The amount written in words do not match with the amount in

figures
Date of voucher does not match the date of entry in books of
accounts
The amount mentioned in the voucher do not correspond to the
entry made in the journal
 The voucher has not been properly stamped if the amount of
consideration involved is Rs.5000 or more
 If the payment does not correspond to payment in the regular
course of business
 If the voucher has not been endorsed by a competent
authority it would amount to irregular payment
 If the voucher is mutilated and any senior officer has not
initiated the same, then it shouldn’t be accepted
 Missing Vouchers
WHAT IS MISSING VOUCHERS?
o If a number of vouchers or supporting documentary
evidences are not available for the entries made in the books
of accounts, such non-availability of vouchers is called as
missing vouchers.
WHAT SHOULD THE AUDITORS DO?
o Insist on getting fresh evidences for the recorded transactions
o Find out the evidences supporting details of missing voucher
o Ask for and seek explanations from the employees of client
o Report accordingly in his report
 Vouching of various items
CASH SALES
The auditor should:
o Examine the efficiency and adequacy of internal checks and
internal controls in practice
o Check duplicate copies of cash memo with the salesman’s
copies/summaries
o Preserve the original cancelled copy if any cash memo is
cancelled
o Verify the entries in the sales book and cashbook with the ‘till’
records
o Deposit in banks the entire sale proceeds so the counterfoils
of pay-in-slips can serve as evidence
CREDIT SALES
o The auditor should examine the internal control system in
force and communicate the same to the management
through a letter of weakness
o Goods sold should be normally dealt in by company and sales
should relate to the period under audit
o Goods sold on “sale or return” basis should be recorded
separately
o If goods are sold on consignment basis , then it should not be
treated as sale unless consignee sells the goods
o Credit sales can be verified by reference to the purchase
orders received from customer and copies of invoices issued
to them
SALES RETURNS
o The auditor should examine the entries in sales returns book
with respect to good received note
o Examine credit notes and entries in customer’s account
o The auditor should scrutinize the aspects where there are
large sales return in beginning of year. It may be the reversal
of fictitious sales shown last year to show high revenue

CASH PURCHASES
o The auditor should check internal control system in operation
o The auditor should make routine checking
o The auditor shall check the cash memo or invoice issued by
the supplier to verify the payment of such purchases
CREDIT PURCHASES
o Can be verified by reference to purchase requisitions and
purchase orders placed with suppliers
o The auditor can examine the entries in purchases book with
reference to purchase invoice and goods received note
o The auditor can verify the statement of account of suppliers and
correspondence with them from time to time

PURCHASE RETURNS
The auditor should:
o Verify the internal control system and cut-off procedures
o See the entries are correctly made in purchase returns book and
suppliers account
o Check the goods returned note and debit notes issued