3 Answers | Add Yours
Vouching is a process of acknowledging financial obligations and authorizing the disbursement of cash. By using a vouching, or voucher system a company, or person will have concrete documentation of expenses, capital, outlay of funds and written proof in the case of audits. The vouching system is the backbone of auditing because when doing audits one must have proof of all transactions. Without this proof there can be claims of liability against those being audited.
Vouching refers to the practice of using vouchers for authorising and and accounting for financial transactions. Voucher is a document which authorises transactions for making financial payments and for making entries in books of accounts. Vouchers are very important documents in any reasonable audit of accounts of any organizations. To begin with tallying with vouchers permit the auditors to check whether specific transactions appearing in the books of accounts have been properly authorized and if specific entries made are in accordance with the authorisation. As a converse of such checking vouchers also enable auditors to check if specific authorized transactions represented by vouchers are entered in books of account. Then the examination of vouchers also enable to check the correctness and propriety of financial transactions authorized. In this way Voucher forms the core document around which the complete financial audit is carried out.
Vouchers are very important documents in any reasonable audit of accounts of any organizations. Vouchers are the base of audit. After entering all vouchers entries then the work of auditing will be start. Vouchers are the back bone of the audit. Auditor will audit all the records when all records has completed by the posting of the all vouchers.
We’ve answered 301,746 questions. We can answer yours, too.Ask a question