Vouching is the act of reviewing documentary evidence to see if it properly supports entries made in the accounting records. ... When engaged in vouching, an auditor is looking for any errors in the amount recorded in the accounting records, as well as ensuring that the transactions are recorded in the correct accounts.
What is vouching how it is done?
Vouching is defined as the "verification of entries in the books of account by examination of documentary evidence or vouchers, such as invoices, debit and credit notes, statements, receipts, etc. ... Without the proof provided by vouching, the claims provided by the auditor are just that, only claims.
What are the steps involved in vouching?
Important Points Regarding Vouching
- Accuracy of transactions.
- Authenticity of transactions.
- Proper classification of accounts.
- Voucher should be properly numbered serially and arrangement of vouchers accordingly.
- Every checked voucher should be tick marked with sign.
