The process of examining the documentary evidence
to ascertain the accuracy and authenticity of entries in the books of accounts
by the auditor is called as ‘Vouching’. Vouching means a careful inspection of
all original evidences supporting the transaction e.g. invoices, statements,
receipts, etc., in order to ascertain the real accuracy, authenticity and
validity of the transactions. It confirms that the amount specified in the
voucher has been posted to an appropriate account which will disclose the
nature of the transaction. Therefore, vouching is referred as the very essence
of auditing. It helps an auditor in establishing the truth of entries appearing
in the books of accounts.
to Ronald A Irish – “Vouching is a technical
term which refers to the inspection of documentary evidence supporting and
substantiating a transaction”.
to J.R. Batliboi – “Vouching means
testing the truth of the terms appearing in the books of original entry”.
· Dicksee defines vouching “as an act of comparing entries in the books of
accounts with documentary evidence in support thereof ”.
The main objectives of vouching are:
To examine that all transactions and entries have
been properly accounted for in the appropriate books of accounts.
To ensure that adequate documentary evidence exist
to all the transactions.
To ensure that the transactions and entries relate
to the business and to the period under audit.
To ensure that there is no omission of any record.
To evaluate the collected evidence and vouchers by
determining the authenticity and validity of the documentary evidence.
To ensure that the transactions and entries are
properly authenticated by the responsible officer.