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.

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