A careful examination of every business transaction with its supporting documentary evidence is called voucher. It is a documentary evidence which proves the accuracy or otherwise of a transaction appearing in the books of account. Different types vouchers relevant to the business transactions should be carefully field and preserved to enable the auditor to carry out vouching. The various types of vouchers to be presented / produced to the auditor for checking are cash receipt, cash paid, purchases, sales, purchases return, and sales return and journal entries. Two persons do the job of vouching. A junior member of the audit staff calls the particulars in respect of each of the entry appearing in the books and the senior member compares the details called out with the documentary evidence produced to him to satisfy himself as to the genuines of the transaction. In this connection either of the following procedure is followed by identifying the act of vouching on the voucher.
The higher rank puts his initials on the voucher.A rubber stamp is put upon its supporting documents and upon the voucher.
If a transaction is satisfactory considered to have been vouched, distinctive tick is placed on the amount appearing in the book of the original entry. If an item is considered to be in sufficiently vouched for certain reasons, a symbol “Q” is put on the amount appearing in the book of original entry and the relevant particulars of the vouchers which are insufficiently vouched are noted on the query list. A copy of the queries should be handed over to the management to give them opportunity and time to get them cleared on the production of required documentary evidence, the queries would be cleared and consequently objections raised against them would be dropped. At the conclusion of the audit, a list of unclear queries will be prepared and reported to the management or to the shareholders.
Principles of vouching:
At the time if vouching auditor should keep in view the following important principles in his mind.
1. Arrange vouchers:
First of all auditor should check all the vouchers provided by the client are properly arranged. These are in same orders as the entries are made in the books.
2. Checking of date:
Compare the date of the voucher with the date recorded in the same book. It is the responsibility of auditor.
3. Compare the words and figures:
The auditor should fully confidence about the amount written on the vouchers, its figures and words are same or not.
4. Checking of authority:
The auditor should examine that all the vouchers are passed by the authorized officers. If the voucher is passed by unauthorized person it will not be correct.
5. Cutting or change:
If there is any cutting or change on the receipts and vouchers figures it should be signed by the authorized officer. The auditor should fully confidence by inquiring about it.
6. Transaction must relate to business:
The auditor should carefully analyze that the entries must pertain to the business.
7. Case of personal vouchers:
The auditor should not accept the voucher in personal name. There may be a chance that an officer of the company has bought any item in his personal capacity.
8. Checking of account head:
Auditor must be satisfied about the head of account in which cash is deposited and drawn. He should analyze the documentary evidence in this regard.
9. Case of account head:
The auditor should not accept the cancelled voucher. Because it has already did the purpose of payment. There will be a risk of double payment if it is accepted.
10. Complete/important note:
The auditor should take some notes about those items which need further evidence or explanation e.g. partnership deed, leases, articles of association, minute, books contracts etc.
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