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Unit 9: Vouching

11. Objections: The objection stated in the working papers can be discussed with the Notes
management at the end of audit. He can form an opinion on the basis of such objections.
He can submit his report either clear or qualified.
9.1.3 Precautions

The following are the precautions of vouching:
1. A vouching is documentary evidence in support of a transaction in the books of account.
2. The act of establishing the accuracy and authenticity of entries in the account books is
called vouching. Vouching is a technical term which refers to the inspection by auditor of
documentary evidence supporting and substantiating transactions.
3. Vouching is considered to be the essence of auditing and therefore the auditor should be
very careful while vouching.
4. Vouching means to substantiate an entity in the books of account not only with any
documentary evidence such as agreement, receipts, counterfoils of a receipts, but also to
see that the transactions has been properly authorized, recorded and entered in the books
of account.

5. Vouching also means checking of additions, ledger posting, extracting of balances in the
ledger, etc.
6. The extent to which the auditor should check will depend upon the size of the
business, the accounts of which he is auditing.
7. A voucher is documentary evidence is support of a transaction in the books of account. It
may be a receipt, counterfoil of a receipt book, an agreement, resolution passed by Board
of Directors or Shareholders and as recorded in the minutes books, and invoice, bank
pay-in-slip, Bought note, Sold note, correspondence, gatekeeper’s books, wages book,
order book and so on.
While examining the vouchers, following points must be borne in mind:
1. All the vouchers are consecutively numbered and filed in order of the entries in
the accounts.
2. He should pay attention to the dates, name of party to whom the voucher is issued
and amount.
3. The voucher inspected should be cancelled by a stamp.
4. Special attention should be paid to those vouchers which are in the personal name
of one of the patterns, directors, manager or secretary.
5. He should see that every voucher is passed as in order by a responsible officer.
6. He should also note, whether the vouchers is stamped.
7. He should also find out the nature of payment as to whether it relates to the
business.
8. He should see as to which account the payment is posted- revenue or capital.
9. Attention should be paid to the amount both in words and figures.
10. Note should be made of any item which further elucidation or information or
evidence which is available from various deeds.
11. If duplicate voucher for missing one is produced, it should be properly securitized
to avoid any fraud. List of missing voucher should be prepared and reasons and

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