Question

vouching is the backbone of auditing. comment explain general consideration to be borne in mind by the auditor while vouching cash transaction​

Answer 1

Vouching refers to the checking of account book entries by reviewing the vouchers or the proofs, like accounts, invoices, debit and credit notes, receipts and more.

The considerations which are to be borne by the auditor include -

• An auditor should review the records whether evidentiary documents endorse them or not.
• Both the income and expenditure related records should be divided, and separate files should be held.
• An auditor should use the special sign on tested vouchers to prevent them from being used again.
• All the entries in the account books should be numbered, and the number and date should correspond with the voucher concerned.
• The auditor should check whether or not the general accounting principles have been followed and whether or not a clear reduction in capital and revenue has been made.