Vouching : Meaning and Objective

Meaning:-

Vouching is concerned with examining documentary evidence to ascertain the authenticity of entries in the books of accounts. In other words, it is an inspection by the auditor of evidence supporting the transactions made in the books. Vouching is a technique used by an auditor to judge the truth of entries appearing in the books of accounts. Some important definitions of vouching are:

“Vouching means testing the truth of items appearing in the books of original entry.” – J.R. Batliboi

“Vouching is an act of comparing entries in the books of accounts with documentary evidence in support thereof.” - Dicksee

From the above definitions we can conclude that vouching is a technique in which an

the auditor verifies authenticity and authority of transactions recorded in the books and on the basis of which he submits a report, indicating that accounts are correct, free from errors or fraud and complete.

Objectives of Vouching :-

1. All the transactions which are connected with the business have been recorded in the books

of accounts properly.

2. To verify that all transactions recorded in the books of accounts are supported by

documentary evidence.

3. The vouchers which support the entries are legally valid from the viewpoint that they are

authentic, addressed to the business and properly dated.

4. To verify that no fraud or error has been committed while recording the transaction in books

of accounts.

5. The vouchers have been processed carefully through various stages of the internal check system.

6. While recording the transaction whether distinction has been made between capital and

revenue items.

7. Whether accuracy has been observed while totaling, carrying forward and recording an

amount in the account.

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