What is Vouching? It is the essence of auditing. The auditor can examine the documents that support and confirm a transaction. There is need to test the truth of items recorded in the books of accounts. Vouching means to prove an entry in the accounting record with documentary evidence as well as to see that transaction has been properly authorized and recorded in the books of original entry. The auditor can make an opinion after going through the relevant vouchers and other records. There should be no missing entry and there is no wrong payment made to outside parties. The goods and services purchased must relate to the nature of the business. It tells that transaction is valid, accurate, and complete in all respects.


  1. L. R. Dicksee says that vouching is an act of comparing entries in the books of accounts with documentary evidence in support thereof.
    2. Joseph Lancaster says that vouching is 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.
    3. Ronald Irish says that vouching refers to the inspection of documentary evidence supporting and substantiating transaction.
    4.  R. K. Mautz says that the documentary evidence in support of entries is often referred to as vouching.


1. PROPER EVIDENCE: The purpose of vouching is to note that proper evidence is available for every entry. The signatures, initials and rubber stamp are evidence that document has been authorized and checked:
2. PROPER AUTHORITY: The purpose of vouching is to note that there is proper authority behind every transaction. The transactions are not acceptable at all in the absence of signature of the manager.
3. RIGHT PERIOD: The purpose of vouching is to check that date of the vouchers relates to the accounting period. The adjustments in books are made on the basis of current year record of the transaction.
4. CORRECT AMOUNT: The purpose of vouching is to check that correct amount has been recorded in the entry. The vouching is helpful to record only exact amount in the books of accounts.
5. CAPITAL AND REVENUE EXPENSES. The purpose of vouching is to scrutinize the analysis of transaction into capital or revenue. The expense relating to one year is treated as revenue otherwise it is called capital.
6. PURCHASE FOR BUSINESS: The purpose of vouching is to confirm that purchases relate to the nature of the business. Vouching helps to confirm that private purchases are not recorded as business purchases.
7. ARITHMETICAL ACCURACY: The purpose of vouching is to an arithmetical accuracy of books of accounts. The auditor can confirm that books are accurate by checking totals, sub-totals, of casting and posting.

8. POSTINGS: The auditor can vouch posting ledgers; He can see through vouchers that postings are complete and correct.
9. NO ERRORS: The purpose of vouching is to check and confirm that there are no errors in books of accounts. The errors are the result of negligence or overwork. Audit staff is not overloaded so that they can find errors.
10. NO FRAUDS: The purpose of vouching is to examine that no fraudulent payments are made. The fraud can be committed due to matching minds of employee and customer. The auditor can vouch for entries to disclose such frauds.
11. CASTINGS: The purpose of vouching is to check castings or totals. The auditor can calculate all totals by himself. He can evaluate the totals with books to sustain accuracy.
12. CASH AT BANK: The purpose of vouching is to determine true cash at the bank. He can vouch all receipts and payments. The result is that he can check whether cash book is correct or not.
13. CASH BALANCE: The purpose of vouching is to check that cash in hand is correct. He can count cash and compare it with cash book. He checks that cash book figure tally with cash in hand.
14. REPORTING: The purpose of vouching is to form an opinion for the purpose of reporting. In case of true and fair view, there is a good report. In absence of such results, there may b a qualified report.


1. ARRANGED VOUCHERS. The vouchers are the basis of entry in books accounts. The vouchers support all transactions. It may be cash memo, bill, and voucher, ticket or any other piece of paper showing the dealing in terms of money.
2. RELATE TO BUSINESS: The vouchers must be in the name of the business concern. The vouchers bring name of managers or employees.  not acceptable. The name of business must be mentioned on vouchers otherwise transactions are doubtful.
3. CORRECT ACCOUNTS: The auditor can check the accounts debited credited are correct in all respect. The rules of debit and credit can followed for dividing the transaction into two accounts.
4. DATE OF VOUCHERS: The date of the vouchers is checked. It should relate to the year under audit. The date of last year or next year must not accepted. In the absence of date on voucher, it cannot be acceptable
5. AMOUNT IN WORDS: The amount stated in the voucher is recorded in the entry. The net amount must be entered. The trade discount is not included in the amount of the voucher. The amount in words and figures must be the same.
6. CHANGES IN VOUCHERS: The changes in vouchers should be discouraged. The date, amount, rate of one unit and name of concern may be changed. The changes should not be accepted unless approved by the owner or manager.
7. REVENUE STAMPS: The stamps are used according to the value of cash memos. The Stamp Act 1899 is applicable for affixing revenue stamps. A voucher of less than twenty rupees does not require revenue stamp.
8. AUTHORITY: The vouchers must be recorded in the books of accounts after proper authority. The owner or manager must put his signature on every voucher for approval of dealing. The voucher without signature of management is not recorded.
9. AGREEMENTS: The auditor must examine the agreements, correspondence and other papers relating to business activities. Such  agreements provide basic information to the auditor. He can vouch the transaction based on such agreements.
10. BY-LAWS: The memorandum and articles of association are rules and   regulations in case of company. The by-laws of societies and clubs are  used to determine management power. The auditor has the right to go through these rules and regulations.
11. MORTGAGE DEEDS: The management may enter into agreement with any party for purchase and sale of assets. The deed or agreement is prepared. In case of loan against immovable property mortgage deed is signed. The contents of deed must be studied.
12. MINUTES BOOK: The auditor should examine the minute book. The resolutions and decisions of directors and shareholders are recorded there. He can see that such decisions have been implemented in the  books of accounts.
13. NOTES AVAILABLE WITH MANAGEMENT: The notes or other papers available with management can be studied, The working papers of  Previous year can help the auditor to note many points of evidence relating to last year.


1. READING OUT: The vouching is a task of the auditor. The junior auditor can read out the contents of the voucher. He can inform the senior auditor about the date, name of organization, number of voucher and amounts of vouchers.
2. COMPARISON: He can senior tally auditor each and can every hear the item contents stated in called the voucher out by the junior auditor with entries in the books of accounts. Thus comparison is a part of vouching procedure.
3. TICKING: The senior auditor can use various ticks or symbols to the items checked. The ticks may be an abbreviation of words. Such   ticks or symbols may differ from auditor to auditor because these are code words.
4. SlGNATURE: The senior auditor can vouch the entries with the help of vouchers, The can put his signature or initials on every voucher for safety measures. The signed vouchers cannot be presented again for another entry.
5. STAMPING: The senior auditor can use the rubber stamp instead of signature or initials. He can use stamps for checking vouchers. The rubber stamp may have the wording ‘Checked and cancelled’ on it.
6. QUERY: The vouchers may be missing. The entries may be doubtful due to over-writing and erasing. The audit staff can write ‘Q’ against such entry. This entry is recorded in working papers.
7. MANAGEMENT: The audit staff can give some time to the management for clearing the objections. The doubtful entries are handed over in   written form. The management can examine the record in detail.
8. REPLY: The management may respond after one for two days about the doubtful entries. The auditor can examine the respond of managers. The auditor can judge whether the respond is right or wrong.
9. CLEARANCE: The audit staff can clear the question mark for which proper answer is made available. The auditor may not be satisfied with the answers of objections. He can inform the management about this query.
10. NOT SATISFACTORY: The auditor may disallow the unsatisfactory reply.  He has skill, training and experience. He can use all available means to test the truth. He can note down poor clarification in working papers.
11. OBJECTIONS: The objection stated in the working papers can be discussed with the management at the end of audit. He can form an opinion on the basis of such objection. He can submit his report either comprehensible or qualified.


1. ACCURACY OF BOOKS: Vouching is concerned with checking entries in the books ‘of accounts with the help of vouchers. The accuracy Of books of accounts is maintained through vouching: The entry is recorded and posted on the bass of vouchers only.
2. LOCATION OF ERRORS: Comparing of figures in entries and vouchers can help the auditor to locate errors. The location and correction of errors leads to reliable data. The vouching is thus the backbone of auditing for discovery of errors.
3. DETECTING FRAUDS: Vouching is an element of auditing. The minor frauds are detected by it. The management can fib( the responsibility of fraud. Vouching is a tool in the hands of auditors for ensuring that the books of accounts are accurate.
4. CORRECT TOTALS: Vouching is essential for checking totals and subtotals. The totals of voucher are tested. The deductions of discount are   checked. The addition of taxes or other charges are noted. The net amount is recorded in journals and ledgers. There is a need of correct total for accuracy.
5. COMPLETE POSTING: Vouching is the essence of auditing. There is a demand for accurate record of audit. When posting is complete in all respect, it means work of vouching is under process. The trial balance is extracted from such record. It will facilitate audit work.
6. THOROUGH CHECKING. Vouching is the essence of auditing. All vouchers may be compared with all entries in journal and posting into the ledgers. In small companies or where internal, control system is weak thorough checking is highly essential. Vouching is the only way of thorough checking.
7. RELIABLE FINAL ACCOUNTS: Vouching is the essence of auditing.  There is a need of reliable final accounts. It is only possible when accounting record is correct. Thus vouching helps to produce true journal and ledger books upon which we can draw true final accounts.
8. ALTERATIONS ARE NOT POSSIBLE: Vouching is the essence of auditing. The alteration in figures after vouching is not possible at all. All entries are ticked with the help of special symbols used for this purpose. Thus vouching discourages the change in figures for maintaining  accuracy.

9. RELATED VOUCHER: Vouching is the essence of auditing. The related vouchers are acceptable for recording business transaction. The irrelevant or doubtful voucher cannot be used for making the business record. Vouching accepts only real and genuine voucher relating to nature of work.
10. RELATE TO BUSINESS: Vouching is necessary for auditing routine business activities. The voucher must be relevant to routine business  transaction. The nature of business will determine the relevance to business, The personal activities of owners or manager do not relate to the business.
11. CURRENT YEAR: The expense and income of assets liabilities Of the current year must be recorded in the current year. The adjustments outstanding. prepaid, accrued and unearned incomes must be made The matching revenues and expenses of current year are needed.
12. NO- OMISSION: There must be any omission of any business transaction. The omission of transaction cannot show true and fair view  of business affairs. Vouching is useful tool in the hands of auditor. The omission can be traced and corrections can be made for true. business position.
13. ACTUAL TRANSACTION: There is a demand of audit that actual transactions be recorded. The fictitious transaction must be avoided. The auditor can use vouching technique to track actual transactions. The   possibility of fictitious transactions is altogether eliminated through vouching.
14. BUSINESS POLICIES FOLLOWED: Vouching is helpful to find that business policies have been followed. The policies are broad guidelines   for doing the business. The business objectives are achieved only when policies are implemented. Vouching is used to examine the policies adopted.
15. TRUE FINANCIAL STATEMENTS: Vouching is essence of auditing. The auditor can see whether there is link between books of account and financial statements. The truth in financial statements depends upon truth in books. Therefore vouching is a means of tracking truth in  financial statements of business concern.
16. HELPS TO FORM OPINION: The auditor can form an opinion on the books of accounts and financial statements. His opinion is based on accounting, principles followed and completion of ledger formalities. Vouching tells us about accounting principles and legal obligation. Thus vouching is the essence of auditing.
17. PROPER AUTHORITY: Vouching is the essence of auditing. Proper authority supports every transaction. The signature of management on every voucher shows proper authority.