IMPORTANCE OF VOUCHING

– Ensures genuineness of the transactions

– Enables to know transactions

– Helps to know relevance of the transaction

– Facilitates proper allocation of capital & revenue, expenditure

– Detects frauds and errors

– Decides authenticity of transactions

– Ensures proper accounting

– Compliance with law

– Ensures proper disclosure
The special considerations to be borne in mind by the auditor in the course of vouching

– The date of the voucher falls within the accounting period;

– The name as recorded and as contained in voucher is same

– Voucher/transactions therein are duly and properly authorized by the relevant signatory;

– The transaction for which payment have been made or amount have been received relates to business.

– The transactions being examined belongs to the entity and took place during the relevant period;

– Whether any alteration has been done in the voucher, if so whether it has been duly recorded and
authorized.

– Whether any control number maintained on voucher or not. Whether there is any missing number or voucher.

– The transaction is recorded in the proper account and revenue or expenses is properly allocated to the accounting period.

– All transactions which have actually occurred have been recorded.

– The posting from the voucher of the amount needs to be correctly taken in the final accounts, disclosed in accordance with recognized accounting policies and procedures.