Vouching involves testing the accuracy of transactions recorded in accounting books by examining supporting documentation. It helps auditors ensure transactions are valid, all entries are supported, and nothing has been omitted or misrecorded. Key aspects auditors examine when vouching cash receipts include cash sales records, bank deposit slips, and reconciling receipts to entries in cash books and bank statements. This helps auditors verify revenues have been completely and properly recorded.
Presentation on vouching and verification for the benefit of B Com financial Audit students, topics covered are vouching of revenue items , verification and valuation of capital expenditure, receipts and valuation and verification of inventory
Presentation on vouching and verification for the benefit of B Com financial Audit students, topics covered are vouching of revenue items , verification and valuation of capital expenditure, receipts and valuation and verification of inventory
BCom Auditing and Corporate Governance Notes-1.pdfMystatus4
In this Slides we have Provided BCom Auditing and Corporate Governance most important Questions and Answers with some important Points and notes which helps you to score good marks.
If you want more information regarding this topic then please visit our sites https://www.thetreasurenotes.in and https://www.proedunotes.in
Verification and valuation of assets presentation by Syed Ali Gohar Shah 21/1...Syed Ali Gohar Shah Shah
This presentation was assigned by Respected Teacher SIR ATTA HUSSAIN SHAH and was presented by SYED ALI GOHAR SHAH In SINDH UNIVERSITY MIRPURKHAS CAMPUS. On the date of Monday 21/10/2019.
This is a step by step plan of the auditing work to be performed, specifying the procedure to be followed in the verification of each item in the financial statements, and giving the estimated time required’.
The word, ‘Audit’ is derived from the Latin term “audire” which means to hear. Audit is a thorough review of a department’s records and reports, in order to verify that assets and liabilities are properly recorded on the balance sheet and all profits and losses are properly assessed. To meet the objectives of Audit, verification of revenue, expenditure, bank deposits, bank reconciliations, accounts payable and accounts receivable, cash, loans and advances, disbursement and regular transactions is very necessary.
A. Primary Objectives of Audit
B. Subsidiary Objectives of Audit
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
B. Subsidiary Objectives of Audit:-
Detection and prevention of errors:
Errors of principle
Errors of omission
Errors of commission
Compensating errors
Errors of Duplication
BCom Auditing and Corporate Governance Notes-1.pdfMystatus4
In this Slides we have Provided BCom Auditing and Corporate Governance most important Questions and Answers with some important Points and notes which helps you to score good marks.
If you want more information regarding this topic then please visit our sites https://www.thetreasurenotes.in and https://www.proedunotes.in
Verification and valuation of assets presentation by Syed Ali Gohar Shah 21/1...Syed Ali Gohar Shah Shah
This presentation was assigned by Respected Teacher SIR ATTA HUSSAIN SHAH and was presented by SYED ALI GOHAR SHAH In SINDH UNIVERSITY MIRPURKHAS CAMPUS. On the date of Monday 21/10/2019.
This is a step by step plan of the auditing work to be performed, specifying the procedure to be followed in the verification of each item in the financial statements, and giving the estimated time required’.
The word, ‘Audit’ is derived from the Latin term “audire” which means to hear. Audit is a thorough review of a department’s records and reports, in order to verify that assets and liabilities are properly recorded on the balance sheet and all profits and losses are properly assessed. To meet the objectives of Audit, verification of revenue, expenditure, bank deposits, bank reconciliations, accounts payable and accounts receivable, cash, loans and advances, disbursement and regular transactions is very necessary.
A. Primary Objectives of Audit
B. Subsidiary Objectives of Audit
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
B. Subsidiary Objectives of Audit:-
Detection and prevention of errors:
Errors of principle
Errors of omission
Errors of commission
Compensating errors
Errors of Duplication
auditing is an examination of accounting
records undertaken with a view to establish whether they correctly and completely reflect the transactions to which they relate.
Vouching:Meaning, Definition, Importance
Routine Checking And Vouching,
Voucher And Types Of Voucher
Vouching of receipts-cash sales,
Receipt from debtors,
Proceeds From The Sale Of Investments,
Vouching Of Payments,
Cash Purchase,
Payment To Creditors,
Deferred Revenue Expenditure.
Identify the type of evidence for each procedure Procedure Type of Evi.docxMaxd78Pipero
Identify the type of evidence for each procedure
Procedure Type of Evidence Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank 1. reconciliation. Inspection Examine the internal auditor's initials on monthly bank reconciliations as 2. an indication of whether they have been reviewed. Account for a sequence of checks in the cash disbursements journal to 3. determine whether any have been omitted. Analytical procedures Examine vendors' invoices and other supporting documents to determine whether large amounts in the repair and maintenance account should be Confirmation 4. capitalized. Inquire about the accounts payable supervisor's monthly review of a computer-generated exception report of receiving reports and purchase Documentation 5. orders that have not been matched with a vendor invoice. Inquiries of the client Foot the accounts payable trial balance and compare the total with the 6. general ledger. Inquiries of the client and observation 7. Confirm accounts payable balances directly with vendors. Inspection 8. payable. Observation 9. comparison takes the increase in payroll tax rates into account. Physical examination 10. recorded transactions in the acquisitions journal. Recalculation Reperformance
.
1. Definition in the words of J.R.Batliboi ,
“Vouching means testing the truth of
items appearing in the books of original entry”
2. From the definition it is clear that, A voucher is a
documentary evidence in support of a transaction in
the books of accounts. Vouching is used to find out the
accuracy and efficiency of entries in the books of
accouts.in other words vouching can be regarded as
the backbone of auditing.
3. To ensure that transaction are acceptable (ie.valid)
To ensure that all the entries are made with evidence
To see that all the transactions are recorded and
nothing is left out
Non business transaction are ignored
Detection of frauds and errors
4. It ensures accuracy of books of accounts
It helps the auditor to ensure transactions recorded in
the books are relating to business only
It helps the auditor to record all the transactions
It helps the auditor to go behind and beyond the
books of accounts
It helps the auditor to proceed with his work smoothly
It ensures that transaction is valid or not
5. Opening balance
Cash sales
Receipts from debtors
Income from interest, dividends.
Rent received
Bills receivable
Commission
Sale of investments
Bad debt dividends
Sale of fixed assets
income from hire purchase
6. Cash may not be recorded in books and cash may be
misappropriated
Discount allowed may be over stated
Cash sales may be under-recorded
Cash sales may be recorded as credit sales to fictitious
debtors
Fictitious entries for sales return may be made
Receipts from customers may not be recorded
Good debts may be recorded as bad debts
Deposits into banks may be over stated
Deposits of cash may be delayed
7. Auditor has to carefully examine the system of internal
check
Auditor can go into test checking
He should compare rough cash book with original cash
book
He should examine the methods of depositing daily
receipts
He should check the bank pass book with the entries in the
cash book
He should vouch cash receipts by reference to evidence
He should note that all the receipts are in printed forms
He should enquire the bad debts written off
8. The vouching procedure in regard to cash sales (i.e the vouching
of cash sales by an auditor) should be on the following lines
He should examine the system of internal check in operation in
regard to cash sales
After ascertaining the efficiency of internal check he should vouch
the cash sales as follows
1. Cash memos of each and every salesman should be checked at the
end of the day
2. He should compare the summary of daily sales of the salesman with
cash analysis of the receiving cashier.
3. He should examine the rough cash book
4. In case there is automatic cash register in use he should check daily
totals entered in cash book
5. The summary of daily sales should be checked with the entries in
stock register
6. He should verify the daily deposit of cash received into the bank