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Unit 9: Vouching

4. He should also see that only those goods which are dealt with by client have been purchased. Notes
5. The auditor also sees that the goods mentioned in the invoice are not capital goods.

6. He should, as a ‘test check’, compare some invoice with the Goods Inward Book or the
Gatekeeper’s Inward Book in order to see that the goods have been actually received.

7. The auditor should cast a cross casts of the Purchase book.
8. He should see whether trade discount has been deducted from the invoice before making
the entry in the Purchase Book.
9. While examining the invoices, if the auditor comes across invoices marked ‘copy’ or
‘duplicate’, he should satisfy himself that they were obtained in respect on only those
invoices which have been actually lost or missed and they have not already been entered
anywhere else in the Purchase Book.
10. If an invoice runs into several pages, the auditor should see that the grand total is correct.

9.3.4 Purchase Return

When the goods are returned to the seller, being not according to the sample or of inferior
quality, a credit note should be obtained if the price has already been paid. If the price has not
been paid, a note should be sent to the cash department to send less amount to seller. The auditor
should compare the credit note with the purchase Returns Journal or Return Outwards Book and
Gate keeper’s Outwork Book or the stores records. The auditor should pay particular attention
to heavy returns at the beginning or the close of the year as such entries might have been passed
to adjust a fictitious purchase in the past.

9.3.5 Credit Sales

The auditor should now proceed to vouch the Day Book or the Sales Book which records only
credit sales. The auditor has to be more careful in the case of vouching sales, as documentary
evidence is not as conclusive as in case of purchase. He should enquire into the internal check
system regarding the sales may be outlined as below:

1. Whenever on order is received, it should be recorded in the Order Received Book, giving
details regarding the date on which the order was received, the name of the customer, the
particulars about the goods, date of delivery, made of transport, etc.

2. The order or a copy of it is sent to the Despatch Department.
3. When the Despatch Department has packed the goods, another clerk should compare the
goods.
4. A responsible official will now mark the rate at which the goods are to be charged.

5. The invoice will then prepare in duplicate or triplicate by means of carbon papers.
6. One copy of the invoice will be sent to the invoice clerk who enters it in the Sales Book and
later on this is sent to the customer, another copy will be sent to the gatekeeper who will
record in the Goods Outward Book that such and such goods left the premises, the third
copy will be retained for further reference.

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