Substantial Procedures Vouching of Cash Transaction

The main objects of vouching or auditing of a cash book:

1.to ensure all the receipts are accounted for
2.to ensure that no fraudulent payment have been made
3.to justify both cash book and bank statement
4.to ensure that all receipts and payments are properly recorded.

Now at first we have to know what is Voucher and what is Vouching ?

Voucher:A voucher is a documentary evidence which is used to support a transaction in a books of account.

Vouching:The act of establishing authenticity and accuracy of all entries in a account book is called Vouching

Some important point when auditing a voucher which a auditor must kept in mind:

1.All the voucher should be consecutively arranged.because if all the vouchers are not consecutively arranged then lots of time will be lost to find out a specific voucher.

2.A auditor must pay attention to the dates,amount,name of the party who is using the voucher and to whom the voucher is issued which must be similar with the cash book.

3.auditor should put special attention to those voucher which are in the name of secretary,directors,partner,manager.

4.auditor should also check that every voucher is properly issued by responsible officer.

5.he should also check the nature of the payment whether it related to business or not.

6.he should also check where the payment is posted, in revenue or in capital.

7.he should also pay attention to both amount and word figure.

8.he also have to make note if further evidence is required for any voucher.

9.If duplicate voucher for missing voucher is produced then it should be scrutinized more carefully.

10.he should also checked every voucher whether it is stamped or not if it is over a certain amount.

11.an auditor can not take any help from the staff or client while auditing vouchers.

12.he should also check that whether Receipted invoice is consider as voucher or not.if not then it must be consider as voucher there is a danger of payment being made twice.

13.while check the voucher for insurance,rents,taxes ,etc the auditor should notice the period because sometimes these payment are made in advance,so he should check weather proper adjustment is made or not.