Page 188 - DCOM204_AUDITING_THEORY

Auditing Theory

Notes 3. Explain procedures involved in vouching.
4. How vouching of cash transactions is carried out? What is its relevance in auditing?

5. What do understand by trading transactions? How vouching of trading transactions is
performed?
6. What is the importance of internal checks in carrying out vouching procedure?

7. Examine the system of employment of casual labour.
8. What are the Auditor’s duty as regards Wages?
9. What are the duties of an auditor in connection with credit purchase?

10. What are the duties of an auditor in connection with credit sales?
11. What do you understand by total accounts and sectional balancing in vouching of big
organization’s account?

Answers: Self Assessment

1. True
2. False

3. True
4. True
5. True
6. Payment or receipt of money
7. evaluation of internal checks; examination of internal controls
8. counterfoils of the receipts issued to the debtors
9. bank pass book
10. Purchase Book
11. credit sales
12. bought ledger
13. The ledger
14. sales ledger

9.7 Further Readings

Books David Coderre, Internal Audit: Efficiency through Automation, John Wiley & Sons,
2009.
Emile Woolf, Moira Hindson, Audit and Accountancy Pitfalls: A Casebook for Practising
Accountants, Lawyers and Insurers, John Wiley & Sons, 2011.
Iain Gray, Stuart Manson, The Audit Process: Principles, Practice and Cases, Cengage
Learning EMEA, 2007.

Jeanette Franzel, Single Audit: Opportunities exist to improve the Single Audit Process
and Oversight, DIANE Publishing, 2009.

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