Question

What is vouching and explain its advantages.​

Answer 1

Answer:

One of the main benefits of the vouching is that all the documentary evidence which substantiate transactions are thoroughly examined, which helps in identifying the genuineness of the transaction. ... Therefore, vouching acts as a basis for verifying the assets and liabilities.

Answer 2

Vouching means supervision by a spectator of a scripted witness keeping & accomplishing transactions. It is the process of examining documentary proof in which all the transactions are properly recorded.

Its advantages are-

• It observes all the receipts and payments in a proper way. The Actual amount has been documented.
• All the transactions that actually happened have been documented.
• It is called the backbone of the spectator. Every transaction that has been made is inquired through the basis of helpful documents.
• The spectator is not only correcting the mistake of the books of accounts but also focusing on the transactions and making them relevant for the business.