VOUCHING OF TRADING TRANSACTIONS
After having completed the vouching of cash
transactions, the auditor should proceed to examine the trading transactions.
Trading is a business process starting with the purchase of goods and ending
with sale. The major trading transactions are purchase, purchase returns, sales
and sales returns. The main objective of vouching trading transactions is to
detect misappropriation of goods. Therefore, the auditor should take great care
in vouching trading transactions to prevent misappropriation of goods.