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Difference between Vouching , Verification and Valuation

 

Difference between Vouching , Verification and Valuation 



Vouching

Verification

Valuation

Meaning

Vouching is a process of comparing the entries in the books of accounts with the bonafide vouchers


Verification is a process which proves the existence, ownership and title to the assets


Valuation is a process which certifies the correct value of the assets and liabilities at the date of balance sheet.


Subject Matter

Vouching is made of the entries recorded in the books of original entry and their posting in the ledger


Verification on the other hand is made of assets and liabilities appearing in the balance sheet at the end of the year


Valuation is also made of assets and liabilities appearing in the balance sheet at the end of the year


By whom

Vouching is done by the senior auditor and audit clerks.


Verification on the other hand is done by the auditor himself or his associates


Verification on the other hand is done by the auditor himself or his associates


When

Vouching is done after the entry of transactions in the account books


Verification on the other is done at the end of the financial year when the final accounts are to be prepared


Valuation on the other is done at the end of the financial year when the final accounts are to be prepared


Evidence

In vouching , bonafide vouchers are sufficient evidence for vouching


Verification is made on the basis of evidence such as the title deeds, receipts and payments etc.


In valuation an auditor has to depend upon the certificates of the owners/directors.






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