Elements Of Internal Auditing- Vouching

1367 WordsJan 13, 20156 Pages
CHAPTER 7 Elements of Internal Auditing- Vouching 7.1 Concept of Vouching The examination of documentary evidence in support of the transactions contained within the book of account is known as vouching. It’s the technique followed in audit for establishing the genuineness of the transactions recorded within the primary books of accounts. It mainly comprises of verifying the record of transactions contained within the books of accounts with the relevant documentary proof and the authority on the basis of which the entries were made. It also consists of examining the process whether the amount mentioned in the voucher has been posted to an appropriate account which might disclose the nature of transaction on its inclusion in the final statement of account. According to Perry and Taylor,“Vouching is the examination of evidence offered in substantiation of entries within the books, including in such examination the proof so far as possible that no entries have been omitted from the books”. So from the above definition it can be clearly said that “Vouching is a technique of auditing which checks the accuracy of entries made in the books of accounts with the help of available documentary evidences.” 7.2 Objectives of vouching Vouching is concerned with the examining documentary evidence to ascertain the authenticity of entries in books of accounts. It is a technique used by the internal auditor to judge the authenticity of entries appearing in the book of accounts.
Open Document