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.