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1. .
By R.Nithin Raja

2.  Introduction to vouching
 Payment To Creditors
 Travelling Expenses
 Salaries and Wages
 Loan taken from bank on Security
 Directors Travelling Expenses
 Insurance Premium
 Bills Receivable
 Interest from Party for Loan Given
 Foreign tour expenses by Managing Director

3.  “TESTING THE TRUTH OF ITEMS APPEARING IN THE BOOKS OF
ORIGINAL ENTRY”
 Verification of Entries in the BOA by examination of Invoices, Dr and
Cr notes, Statements, Receipts etc.,
 In other words vouching is the “Back bone of Auditing”
 Basic Objectives of Vouching:- Transactions recorded in BOA
• Are in Order
• Have been Properly Authorised
• Correctly Recorded

4. o Receipts Issued by the vendor
o Vouchers supported by Bills
o Where the amount of Invoice differs from the payment -
• Short Payment as full Settlement
• Excess Payment
o Periodical Statement of Account
o Minutes of Board Meeting

5. o Rules framed by the company for Re-imbursement
o Authorised by Proper Officials
o Vouch copies of Air/Railway tickets and Hotel bills
o Foreign travelling expenses - Authorization by Board or Partner
o Traveling allowance given as Expense-Check Calculations
o Vouchers supported by full details of Expenses.
o Extraordinary type of travelling - Authorised by Responsible
person.

6. o Employee data – Name, Wage rate, Attendance record etc
o Arithmetical Accuracy of pay roll Function
o Acknowledgement of Employees
o Deductions of TDS,PF etc
o Retired employees not included in Pay roll
o No dummy workman has paid Wages
o Bank Statement
o Unclaimed Wages

7. o Loan agreement between Entity and bank
o Properly authorised by Competent Authority
o Purpose for which Money Borrowed
o Nature of Security Offered
o Confirmation of Loan balance from Bank
o Interest charged by the Bank
o Accounted as “Secured Loan”

8. o For attending Board Meetings
o Resolution fixing travelling expenses per meeting
o Personal expenses are not included
o Voucher supported by all the details
o Foreign travelling expenses-Resolution by BOD, Permission of RBI, Bill
from Company’s travelling agent, Doc.in respect of frgn.exchange

9. o Policy or the cover note or the receipt of renewal Premium
o Statement showing all the details of Policy
o Whether the insurance is adequate or not
o Date of maturity and amount of Premium
o Prepaid Insurance account
o If policy is not renewed-Reasons for that
o Authorised by a reasonable person

10. o Receipt of money in cash book compared with Bills Receivable books
o Bank Statement
o Bills became due but amount not received
o Bills dishonoured
o Bills discounted with bank-contingent Liability

11. o Cheque received deposited in to bank and interest account is credited
o Bank Statement
o Counterfoils of carbon copies issued
o Agreement - Terms and Conditions
o Amount of Interest Credited separately

12. o Board sanctions for foreign tour.
o Purpose and Relevance of tour.
o Sanction of RBI for release of foreign Exchange.
o Expense statement and tour report submitted by MD on his return.
o Expense statement is in conformity with the sanction of board.
o Special attention for Personal exp included in statement.