Which Factors to be Considered while Vouching?

Vouching helps to prove the truth and fairness of account by detecting errors and frauds. It is known as the evidence for the support of a transaction in the books of account. An auditor will examine the efficiency and reliability of internal check before beginning to vouch for cash payments. So, Auditor should consider the following features in vouching while verifying vouchers. It may be a bill, receipts, requisition form, agreement, decision, bank paying slip, etc.

So, while conducting the test of vouchers, the following factors are to be taken into consideration:

  • An auditor should check the records whether they are supported by evidential documents or not. Check whether the vouchers are printed, numbered and arranged in the order of the date of occurrence of transactions.
  • All the documents related to income and expenditures are to be separated and separate files should be maintained. If not, the auditor should ask to do so.
  • An auditor should use the special sign in tested vouchers so that they cannot be used again. The entries in the books of accounts should also be numbered and the number and date should correlate with the concerned voucher.
  • While vouching, an auditor should check whether the general principles of accounting have been followed or not and clear cut demarcation of capital and revenue is made or not.
  • Whether the documents presented for testing are related to the current year or not. The transactions should be clearly classified into revenue or capital transactions and accordingly entered in the books of accounts
  • All the documents which are presented for auditing must be authorized by the concerned authority. An auditor should check whether it is done or not. The vouchers should bear the signature of the authorizing officer.
  • An auditor should ask duplicate copies of missing vouchers, but if important vouchers have been missed and the auditor is not satisfied with the reasons presented, s/he should write in a report to this fact.

If an auditor finds the correction in the evidential document, then such figures should be verified with documents and to be noted down in audit notebook for consideration while preparing a report. An auditor should ensure that the alterations made in the vouchers are duly authorized. All the documents are to be reviewed before closing the work of audit which helps to check again those facts where the special sign is given.


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