VOUCHING CONCEPT IN AUDITING,IMORTANCE.pptx

VOUCHING CONCEPT IN AUDITING

1. VOUCHING CONCEPT MEANING IMPORTANCE TYPES

2. MEANING Vouching means inspection by an auditor of documentary evidence supporting & substantiating transactions. Vouching is the process of checking documentary evidence that the transactions are properly recorded & accounted for. The main aim of vouching is to inspect all receipts & payments are properly accounted for & no fraudulent transactions are recorded. Vouching is a substantive audit procedure to obtain evidence as to completeness, accuracy & validity. With the help of vouching auditor come to know the genuineness of the transactions.

3. IMPORTANCE Classification: Transactions have been classified & disclose in accordance with accounting policies. Accurate amount: Accurate amount has been recorded. Pertains to entity: Transactions pertain to an entity that took place during the relevant period. Actual occurred: Transactions which have actually occurred have been recorded. Proper Accounts: Transactions is recorded in proper account to the proper period

4. OBJECTIVES To see that transactions & entries are properly recorded in the books of accounts. To see that entries & transactions are properly authenticated by a reasonable person. To see that transactions have been properly classified & disclosed in accordance with the accounting policies. To see that no fraudulent transactions are recorded in books of accounts. To see that all entries & transactions are supported by proper evidence

5. VOUCHER A voucher is documentary evidence in support of any transaction in books of accounts. Voucher can originate within the organization or outside the organization i.e. they can be internal or external. Example: Internal voucher: invoices for purchase & sale, receipts, counterfoils, slip of bank, etc.

6. TYPES Primary voucher : All written evidences in original are primary vouchers. Secondary voucher : Copies of original vouchers are called collateral vouchers.