How You Can Explain The Statement " Vouching Is The Essence Of Auditing"�?

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 basis of vouchers only. 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 that the backbone of auditing for discovery of errors. Vouching is an element of auditing. The minor frauds are detected by it. The management can fix the responsibility of fraud. Vouching is a tool in the hands of auditors for ensuring that the books of accounts are accurate.

            Vouching is essential for checking totals and sub-totals. The total 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. 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 facilities audit work.