Vouching is a Technical term, which refers to the inspection of documentary evidence supporting and substantiating a transaction, by an auditor. The auditor in vouching cash payments or credit side of Cash Book should ensure that payments are made for the purpose of business, payment relates to the period under audit, payment is properly sanctioned and recorded, payment has been made to the right person, and payment is properly supported by a voucher and same as entered in Cash Book. Vouching of Payment of Wages. Vouching Audit. If the system is good, possibilities of errors and frauds are minimized. Dear Seniors, Kindly give me notes of the procedures of Vouching Cash Payments & Cash Receipts . If you want to continue this discussion or have a follow up question, Related Files & Downloads Shared By Members. If the organization has opted for an appeal, the auditor has to check the revision order. Department. Vouching of cash payments: While vouching the payment side, the auditor must remain vigilant to the possibility of following errors and frauds. Journal vouchers can be of many types. Tweet The following are the audit steps to audit/vouch/verify the client’s advertising expenses: Audit For Payment Of Advertisement Expenses Check that the advertisement expenses have been properly allocated whether to Capital, deferred revenue or revenue as the case may be. Vouching Payment of Income Tax & Sales Tax | Role of Auditor, Role of an Auditor in vouching Payment of Income Tax, Role of an Auditor in vouching payment of Sales tax, Audit of Partnership Concerns | Guidelines | Advantages to Partnership Firm, Share capital Audit | Role of Auditor in verifying issue of fresh share, Vouching Sales Ledger or Debtor’s Ledger | Guidelines to Auditors, Duties of Auditor in verification of General Reserve & Special Reserve, Verification of Bills Receivable | Procedure | Guidelines for Auditor, Verification of Debentures | Guidelines for Auditors, Weaknesses of Trade Union Movement in India and Suggestion to Strengthen, Audit Planning & Developing an Active Audit Plan – Considerations, Advantages, Good and evil effects of Inflation on Economy, Vouching of Cash Receipts | General Guidelines to Auditors, Audit of Clubs, Hotels & Cinemas in India | Guidelines to Auditors, Depreciation – Meaning, Characteristics, Causes, Objectives, Factors Affecting Depreciation Calculation, Inequality of Income – Causes, Evils or Consequences, Accountlearning | Contents for Management Studies |. I head Risk Assurance at ANB Consulting Co. Pvt. In simple and easier words, it is a precise investigation of the presented documents of the firm by an auditor to check the correctness and accuracy of such documents. Payment shown to ex-workers in the current month. A voucher is a document recording a liability or allowing for the payment of a liability, or debt, held by the person or company who will receive payment. In the case of advance tax, the auditor should verify the statement prepared to calculate the advance tax to be paid. (v) The interest payable and paid for late payment of tax, if any. Cheque may be made payable to a wrong payee. Vouching includes routine checking which is a mechanical checking, whereas vouching is made on the basis of documentary evidence. Cheque, cash advance vouchers may be forged. By the word correct, auditors will ensure that the transactions are recorded in accordance with all financial assertions. 1. He should first of all assess the operation of an efficient and effective system of internal check. 2) He should insist that the vouchers are properly dated. 7. that any additional tax payable as per the assessment order is paid within the time allowed. For the business itself, iii.Have been sanctioned by a person holding some authority, iv.Have been properly recorded in the books of accounts. Vouching of Payment Side of. Seeking to establish the accuracy of recorded transactions, vouching ensures that all the entries in the books of accounts come with the relevant evidence, including invoices, receipts, and others. He should also ensure that the advance tax is paid within the due date specified under the Income Tax Act. Vouching of payment of wages should be done in the following lines. Vouching of Payments • Cash Payment is defined as a form of liquid funds given by a consumer to a provider of goods or services as compensation for receiving those products. Definition: Vouching is a procedure followed in the process of the audit to authorise the credibility of the entries entered in the books of accounts.