Vouching

Definition of voucher
Routine checking
Definition of vouching
Extent of vouching
Procedure of vouching
Techniques of vouching
Voucher:
A voucher is a documentary evidence which proves


the accuracy or otherwise of a transaction

appearing in the books of account. All vouchers
relevant to the business transactions should be
carefully filed and preserved to enable the auditor
to carry out vouching.
Examples:
• Cash Receipt:
 carbon copies of the receipt issued, cash
memo. Correspondence, etc.
• Cash Paid:
 original receipts of the payees supported by
relevant documents e.g., invoices, wages
book, contracts, correspondence, etc.
• Purchases:
 copies of the purchases order, original
invoices, goods received notes, correspondence,
etc.
Examples: cont;
• Sales:
 orders received, carbon copies of the
invoices, copies of goods out slips,
correspondence, etc.
• Purchases Return:
 credit notes received, copies of the goods
sent out slips, correspondence, etc.
• Sales Return:
 debit notes received from customers, goods
received notes and correspondence, etc.

Examples: cont;

• General Entries:
Previous year balance sheet and other available

relevant documentary evidence.

Routine checking:
Routine checking is carried out as under;
1. Checking of costs, sub costs, carry forward, and other
calculations of the books of original entries and
ledgers.
2.Checking of posting in the ledger.
3.Checking of ledger account with records, balancing and
checking the amount on to the trail balance.
For this purpose auditor usually uses different kinds of tick.

The objects of the routine checking are to verify

arithmetical accuracy of the entries, to ascertain that
posting from the books of original entry have been made
to the correct account in the ledgers, and to ensure that
ledger accounts have been correctly balanced.
Definition of vouching:
Vouching is the very essence of auditing. The whole


success of the audit very mush depends upon the

intelligence and skills with which this part of the
work is performed. Vouching means and includes
the examination of every business transaction
with its supporting documentary evidence, the
checking of which enables the auditor to satisfy
himself that the transaction is in order: that it has
been properly authorised: and that it has been
correctly allocated and entered in the book.
Definition of vouching: cont:

If the auditor fails to vouch the item correctly, he



may be considered negligent in the performance

of his duties, and may be held guilty as was
decided in the case of Armitage vs. Brewer and
Knott.
Extent of vouching
The basis on which the extent of the vouching could be
carried out are complete check or test check. The extent of
carrying out the vouching will depend upon many factors.
One of the most important factors is the existence or
otherwise of sound internal control system in practice. If
the system of internal control is sound and does operate in
practice also, the auditor may consider it advisable in
restricting the vouching to a test check basis rather than
carrying out the vouching completely. However, if the
system of internal control is loose or there does not exist a
system of internal control at all, the auditor will be
running the risk if he does not resort to complete
vouching.
The type of test check is the matter which is to be decided

by the auditor while taking all the facts into consideration.