Invoice and Auditor

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Meaning and objectives of vouching
Importance of vouching
Types of vouchers
Vouch various transactions like vouching of trading
Transactions and vouching of cash transactions

• Meaning
• Vouching is concerned with examining documentary evidence to ascertain the authenticity of entries in books of entries in books of accounts. • Evidence supporting and substantiating the transaction made in the books. • It is a technique to judge the truth of entries appearing in the books of accounts.

• All accounting entries must be supported by a document. • A technique to verify the authenticity and authority of transactions recorded in the books on the basis of which the auditor submits a report, indicating that accounts are correct, free from errors or fraud and complete. • It is not only examining the documentary evidence but sometimes auditor has to go behind recorded evidence to eliminate any possibility of fraud.

• “Vouching is the examination of the evidence offered in substantiation of entries in the book including in such examination the proof, so far as possible, that no entries have been omitted from the books”.

-Taylor and Perry.

• To ensure recording of all transactions.
• To verify that all transactions recorded in the books of accounts are supported by a documentary evidence. • To verify the validity of the vouchers which support the entries and to ascertain whether these are authentic, addressed to the business and properly dated. • To verify that no fraud or error has been committed while recording the transactions in the books of accounts. .

• To ensure that the vouchers have been processed carefully through various stages of internal check system. • To verify whether every transaction recorded has been adequately authenticated by a responsible person. • To know that while recording the transaction whether distinction has been made between capital and revenue items. • To ensure whether accuracy has been observed while totaling, carrying forward and recording and amount in the account.

• Auditor must verify the authenticity of transactions, accuracy of amount recorded and proper classification of account. • All the vouchers are numbered serially and dated. To avoid wasting of time in locating a voucher, they have to be arranged serially. • The voucher checked by the auditor should be stamped or tick marked with a special sign, to avoid its use again.

• The amount in the receipt must be shown in words and figures. If there is a difference, it should be investigated. • The receipt should indicate the period for which the payment has been made. It will show the payments made in advance. • If the voucher is in the personal name of the partners, manager, director or any other person, it should be properly treated in the books of accounts.

• The auditor should proceed cautiously and use special ticks for the vouchers which are doubtful. • Every voucher should be certified by a responsible officer of the business. • The auditor should ask for explanation from the concerned official for mission vouchers. If reply is not satisfactory, it should be further investigated.

• While vouching, the auditor should not take any help from client’s staff. • All expenses pertaining to the business should be examined by the auditor. • A receipt obtained from a party for Rs.20/- or more should bear the revenue stamp. • The auditor should see that proper account is debited or credited and proper classification of accounts has been done.

• Distinction is made between capital and revenue items while vouching. • For certain transactions, auditor may refer the resolutions passed at the meeting of shareholders or directors. The agreement made...
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