FY BAF(B)

Acts as an important tool for obtaining audit evidence. Books of accounts made on the basis of documentary evidence. Documents like bills, receipts, pay-in-slips, etc. are called as vouchers. Critical verification of such documents is vouching. Vouching is the inspection of documents which support books of accounts.

Critical examination of accounts. Essence of auditing is Vouching. The importance or advantages of vouching are:

True and Fair

Vouching enables auditor to check whether the entries the Books of account are true and fair which is basic objective of auditing.

Errors and Frauds

IT helps to detect whether there are any errors or frauds in the books of accounts such as error of principle or error of omission.

Whenever any transaction takes place, a voucher is being prepared which gives the details of the transactions. For example: When cash is paid, a payment(cash) voucher is being prepared. These documents consists of serial no. of voucher, date of payment, name of the payee, head of account, amount(in Rs.) etc.

Supporting Document.

If there is any document to support the payment eg. A bill from the supplier it is attached to the voucher as an evidence. The supporting documents are of two types viz., External document and Internal document. External document are obtained from the outsiders example: purchase bills while internal document are prepared by the client it self example: pay roll.

Entries.

The voucher is then passed on to the book-keeper to make the entry of the voucher. This contains serial no. of the voucher , date of payment , name of payee , head of account etc.

The following points should be considered by auditor: 1. Checking the voucher 2. Checking the supporting documents 3. Checking the entry in the books

1.

Checking of the Vouchers :

Name of the concern Serial no. of the voucher Heads of account Debit or Credit Amounts in figures and words

The auditor should see that the vouchers show the following details:
I.

II. III. IV.

2. Checking the supporting documents

Supporting external documents such as: I. Serial no. of the bill II. Quantity III. Amount IV. Signature of the party V. Approval of the bill

3. Checking entry in books

The entry in books tallies with the voucher in the following respects: I. Clients books II. Date of entry III. Quantity IV. Amount

Audit income consists of audit revenue and vouching of receipts. Lets see the audit revenue.

Audit revenue :
The guidance note on audit on revenue is being given by the ICAI which helps to know how an auditor uses the auditing procedures and some of them are a follows : Meaning of revenue Amount included Nature of evidence Verification Examination of Presentation and disclosure

    

2. Vouching of Receipts
The auditor should vouch the receipts i.e. in cash or by cheque in the following manner : Checking voucher and entry Checking Supporting Documents.

 

Checking voucher and entry

The auditor should check the receipts vouchers and the entries in cash book in the following respects : Name of the concern Date of the vouchers Amount in figures Signature of the person preparing the voucher Signature of the receiver

    

Checking supporting Documents

The following points should be checked in respect of the supporting documents such as pay-in-slip , cash memo etc. Pertains to client Date of Document Reference or Serial number of Document Details of transaction Amount Signature of Party.

     

Definition How Expenses are Recorded Special Features Audit Procedures Normal Audit Procedures Internal Control Evaluation Verification Examination of Records(Vouching) Analytical procedures Specific Expenses Goods and Raw Materials Consumed Purchase and Purchase Returns Wages and Salaries Bonus

Under the special guidance of.

Book: