A documentary evidence which proves
the accuracy or otherwise of a
transaction appearing in the books of
All vouchers relevent to the business
transaction should be carefully filed
Means the examination of every business
transactons with its supporting documentry
evidence, the checking of which enables the
auditor to satisfy himself that
the transaction is in order
It has been poperly authorised
It has been correctly allocated and entered in
4. EXTENT OF VOUCHING
Extent of vouching will be depend
upon the Internal Control System of
If Internal Control System is sound,
auditor restricting the vouching to a
test check basis rather than carrying
out the vouching completly
5. PROCEDURE OF VOCHING
Generally vouching is done by two persons.
One member calls out the particulars in
respect of each of the entry appearing in the
Other member compares the details called
out with the documentary evidence produce
to him to satisfy himself as to the
genuineness of the transaction.
6. PROCEDURE OF VOCHING
Either of the following procedure is followed for
identifying tha act of vouching on the voucher:
Senior put his initials
A rubber stamp is put upon the voucher
Distinctive tick is placed on the amount
appearing in the book of original entry
If an item is considered to be insufficiently
vouched, a symbol “Q” is put on the amount.
7. POINTS TO BE CONSIDERED
1. All the vouchers should arrange in the order in
which entries appears in the books of accounts.
2. Dates given on the vouchers which are recorded
in the books fall in the year.
3. Head of accounts debited or credited from the
available documentary evidence
4. It should be clearly seen that the transactions
pertains to business.
8. POINTS TO BE CONSIDERED
5. Every voucher has been passed by the authorized
6. Complete notes should be taken in respect of
each items as require further clarification or
7. Amount should be agrees both in words and
8. Any alteration in amount must be fully inquired
9. CUTT-OFF PROCEDURE
It represents arrangement made for ensuring that
at a particular point of time,
There will be agreement between the physical
stock-in-trade and work in process.
The figures actually shown in the accounts, as
obtained from the records of purchases, sales,
debtors, and creditors
For operationalising cut off procedures, the
following steps be taken:
10. CUTT-OFF PROCEDURE
1. Stocks relating to outsiders be excluded from the
stock of the enterprise.
2. Stocks owned to the enterprise, wherever
situated, should be included in the closing stock.
3. Movement of stock in and out at the closing date
should be carefully examined.
4. Goods sold but not delivered should be excluded
from the inventory.
5. Goods boughs but not received should not be
included in purchases.