The document discusses the process of vouching in auditing. It defines vouching as the examination of documentary evidence supporting transactions. The objectives of vouching include detecting errors and frauds, verifying the truth and completeness of accounts, and ensuring transactions are authorized. The document outlines the principles, techniques, types of vouchers, and importance of vouching transactions such as cash sales, purchases, rent receivables, and payments to creditors. It also discusses routine checking which regularly monitors accounts to detect errors.

1. VOUCHING
ASHWITHA SHETTY
ASSISTANT
PROFESSOR
KRISTU JAYANTI
COLLEGE

2. MEANING
A careful examination of all original evidence such
as invoice receipt of correspondence minutes,
contracts etc
In other words It refers to the inspection of
documentary evidence supporting a transaction, by
an auditor.

3. DEFINITION
According to Dicksee,” Vouching
consists of comparing entries in
the books of accounts with
documentary evidence in support
thereof”.

4. OBJECTIVES ………..
1.To Detect Errors and Frauds
2. To Know the Truth of Account
3. To Find the Unrecorded Transactions
4. To Know That All the Transactions Are
Authorized
5. To Know That Only the Business Transactions
Are Recorded

5. IMPORTANCE OF VOUCHING
1. Vouching Is the Backbone of Auditing
2. Vouching Is the Essence of Auditing
3. Vouching Is Important To See Whether
Evidences Are Correct or Not
4. Detects frauds and errors:
5. Ensures proper accounting:

6. PRINCIPLES OF TECHNIQUES OF VOCHING
 Arranged Vouchers
 Checking Of Date:
 Compare the Words and figures:
 Checking Of Authority:
 Cutting or Change:
 Transaction Must Relate To Business:

7. CONTINUE……
 Case of Personal Vouchers:
 Checking Of Account Head:
 Revenue Stamp:
 Case of Cancelled Voucher:
 .Important Notes
 Printer Vouchers:
 List of Missing Vouchers:

8. TYPES OF VOUCHER
Primary Collateral

9. While examining vouchers the following points
should be noted by the auditor:
 All vouchers have been properly filed, serially numbered and arranged
in order as it saves time in finding out a particular voucher in checking.
 The voucher is properly stamped as normally every receipt for more
than five hundred rupees requires a revenue stamp unless legally
exempted.
 The date and the year of the receipt or the voucher corresponding with
the cash book. The name of the party to whom the voucher is issued, the
name of the party issuing voucher and the amount etc. are correct.
 Those vouchers which have been inspected by him are stamped so as to
avoid the possibility of their being produced again.

10. CONTINUE …
 Every voucher is passed "as in order" by some responsible person whose
signature should be noted.
 Amount paid appears both in words and figures. If they differ, the matter
should be investigated.
 For missing vouchers, the auditor should satisfy himself with regard to
the reasons of their being lost. If he is not satisfied with the
explanations, he should state this fact in his report.
 No help from any member of the staff of the client has been taken while
vouching the entries and checking the vouchers.
 Any alteration in the voucher is duly signed by the invoice clerk.
 In case of vouchers for insurance, rent, rates and taxes etc., the period
for which the payment has been made should be noted.

11. VOUCHING OF CASH SALES
While vouching the cash sales auditor should take the
following steps:
 Internal Check
 Checking Of Memos
 Entry In Cash Book
 Checking Of Cash Register
 Checking Of Cash Book
 Checking Of Price Lists
 Guidance To Client

12. VOUCHING OF CASH PURCHASES :-
1.Cash (cash collections)
2. Cash Memo
3. Cash Bill
4. Goods inward book
5. Payment Order
6. Original receipts from the payee

14. The auditor should examine the following
while auditing Collection from debtors:
 Copies of sales invoice.
 Statement of accounts received from
debtors.
 The counterfoils of receipts.
 Correspondence with the debtor.

15. RENT RECEIVABLE
The auditor should proceed keeping in view following
points:
 Examine the leases agreement with the tenants and
ascertain the exact amount receivable.
 Check the amounts due with the rent-foil.
 Compare the amounts as per rent roll with the cash
book.
 Check the counterfoils of rent receipt issued to
tenants. If agents are appointed to collect
rent, the accounts or statements submitted by them
should be carefully checked.
 Interest and dividends:

16. VOUCHING OF PAYMENT TO CREDITOR
 Goods purchased on credit are entered in the
purchase book.
 The objective of vouching credit purchase is to
see that the auditor’s client pays for only those
goods which have been actually received in the
business and that goods are not
misappropriated.
 The auditor should exercise great care and
effectively check the purchase book and related
ledger accounts.

17. VOUCHING OF SALE OF INVESTMENT
 The auditor should match the interest received with
the details of investments shown in the Investment
Register.
 Purchase of investment during the year should be
verified and it should be ensured that the accounting
treatment for ex-dividend, cum-dividend, ex-interest,
cum-interest is correctly followed.
 Rate of dividends is to be verified with the Annual
reports of the companies in which the investments
are made.
 If the interest, dividends are collected by the bank,
then the bank statements are to be verified.

18.  The auditor should also ensure that the gross
interest/dividend is credited to the account and the tax
deducted at source is debited.
 The auditor should ensure that the tax deducted at source
is claimed as credits at the time of Income tax
assessment of the organization.
 If any interest and dividends that are due are not
received, the auditor should enquire and find out the
reasons for the same.
 The auditor should ensure that interest and dividends
relating to the securities that are pledged by the
organization are duly received.
 If the company under audit holds investments in name of
someone else or under blank transfer, the auditor should
ensure that the incomes are duly received and accounted.

20. MEANING OF ROUTINE CHECKING
Routine checking is the regular monitoring of
business accounts, books and ledgers to determine
how the business is functioning and to detect any
errors that may have occurred, either accidentally or
fraudulently.

21. OBJECTIVES…..
 To know the mathematical accuracy of the
accounts, entered in the primary books of
accounts.
 To know the regularity of accounting in
primary books of accounts.
 By making use of distinct Ticks and Marks to
know that no changes are made in figures
after the check

22. ADVANTAGES
1. All the original entries will be checked; so all the
errors and frauds can be detected easily.
2. All the entries and posting will be tested.
3. Routine checking helps to conduct final audit
because all the balancing and totals have already
been checked.
4. Separate and specific staffs are not needed
because it is a regular process.

23. DISADVANTAGES
1. Routine checking is a mechanical test, so the staff
who performs this work does not have inspiration. So,
there are chances of leaving errors and frauds.
2. Routine checking can only detect small errors and
frauds but not the planned frauds.
3. Routine checking is not needed where self balancing
system is applied.
4. Routine checking cannot detect principle and
compensating errors.