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Is vouching the back bone of auditing? Why or why not?

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Vouching is the process of verifying the information recorded in the company's books of accounts. When vouching, auditors use receipts, vouchers, and any other document used as proof of transaction to authenticate the business-related transactions shown in the account books. Vouching is said to be the backbone of auditing because it eliminates fraud from the system. There are cases where firms try to evade taxes and cheat the government by overstating the expenses to minimize the amount of income that's taxed. Vouching enables the auditor to identify the real and fake costs and discover the actual income earned. Vouching also protects the auditor from being sued for financial fraud. When the auditor vouches for a certain financial statement, it shows that he or she followed due diligence in executing his or her duties and is therefore not responsible for any issues that may arise after approving the books.

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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. 

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