VOUCHING :

Vouching means the examination of documentary evidence in support of entries to establish the arithmetic
accuracy. When the auditor checks the entries with some documents it is called vouching.

Vouching is the acid test of audit. It tests the truth of the transaction recorded in the books of accounts. It is an
act of examining documentary evidence in order to ascertain the accuracy and authenticity of the entries in the
books of accounts.

According to Dicksee, “Vouching consists of comparing entries in the books of accounts with documentary evidence in support thereof.”

According to Joseph Lancaster, “it is often thought that vouching consists of the mere examination of the vouchers or documentary evidence with the book entries. This is, however, quite wrong, for vouching comprises such an examination of the ledger entries as will satisfy the auditor, not only that the entry is supported by the documentary evidence but it has been properly made upon the books of accounts.”

From the above it becomes clear that vouching means testing the truth of entries appearing in the primary books of accounts. In short, vouching means to examine the evidence in support of any transaction or entry recorded in the books of accounts. Vouching does not merely see that the entries and transactions are supported by proper documentary evidence. The auditor should be satisfied that they are properly maintained, they are supported by all evidence and they are correctly recorded in the books of accounts.