How Do You Define Vouching? Why Is Vouching Important For Conducting Audit Work?

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.

American associate of Audit defines vouching as, "The systematic checking of documentary evidence with each individual transaction." Vouching is the first step, auditors take the start to process of audit in any business or non business concern.

Vouchers are individual documents, receipts, bills, invoices, or cash memos showing any transaction and its financial worth. Vouchers are first generated documentary support showing a business transaction.
As the first step in accounting procedure, vouchers are recorded in books of accounts i.e., journals, cash book on immediate basis and afterwards further books of accounts are maintained and accounts statements, trial balance and balance sheets are prepared.

During the process of Audit, its the duty of an auditor to check and verify each individual transaction of business recorded in the books of accounts. This checking of accounts or audit begins with the checking and matching of first record of original transaction with its documentary evidence i.e., voucher. In this process auditors picks all vouchers individually and matches the nature of transaction  in books of accounts. In this process auditors marks his vouching mark or on both voucher and transaction in the book. This process of comparing transaction and vouchers manually or on computers is called vouching.