Vouching in Auditing

Voucher

Voucher is documentary evidence in support of a transaction entered in the books of account.

Vouching

Vouching is the process of verification of transactions entered in accounting books by reference to the corresponding vouchers.

 
Through the process of vouching, auditor checks whether the transaction is duly authorized and completed, whether the transaction is related to the nature of activities of the concern, whether the correct amount is recorded in the appropriate accounting period and whether the transaction was properly analyzed and recorded. Based on vouching, auditor forms his opinion on whether the accounting record are kept as per GAAP or not.

In the process of vouching multiple documents are verified. For instance a payment recorded for a supplier is verified by multiple documents like payee's receipt, purchase order, goods received note from stores, supplier's invoice etc.

Defects in a Voucher

Defects in a voucher that give rise to doubt about it.

1. Voucher not addressed to the organization. (Name of the organization not mentioned).

 

2. Voucher not having the usual address of the organization.

 

3. Purchases and sales of items not related to the business of the organization.

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