Vouching Is What Kind Of Process?

The records maintained for accounts balance and evidence is a vouching process. All the companies must have all this records for auditing purpose. Vouching is the process of matching documentary evidence of an account balance or a transaction with the details recorded in accounting records and provides evidence as to the totality, validity or correctness of an account balance or a transaction. Actually this documentary evidence is called a voucher.

Whenever an auditor is asked to provide the evidence of the validity, completeness and accuracy of a transaction, the auditor gathers evidence that details of the account balance, transaction that has been recorded in the accounting records and usually it is supported by a documentary evidence i.e. voucher. For example, the auditor acquires evidence relating to the validity, completeness and accuracy of an item such as sales recorded in a company's inventory records by vouching from details recorded in the inventory records (e.g. name of the customer, date of the sale, items sold and the total amount of the transaction) to details on suppliers' invoices.

Vouching is necessary for every registered organization so that the record should be kept with the documentary evidence. Whenever auditor conducts the audit he should not face any problem and specially vouching is considered important because it prevents from frauds that could have been done by any one from with in the organization. Vouching is sometimes referred to as verification of the accounting records.

           Vouching is the process by which an auditor of the company checks for evidence of the transactions that were made in the company during a financial year. The auditor has to submit evidence of his work that it is complete and no information has been left out. If any information has been left, the company can suffer huge problems and losses. It is the duty of auditor to gather evidence material.

            For example, if the company buys raw material, the auditor has to see an evidence of the purchase by collecting the receipt of the purchase so that he can continue making a balance sheet or a list of assets. The information that the auditor collects has to be accurate and precise.

           All the information can be obtained by viewing the company's dealing papers in a particular year. It is the duty of the company to maintain such papers.