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Meaning and Definition of vouching

Updated on November 11, 2013

What is vouching?

Vouching of cash transactions

After preparing Audit notebook, audit planning, auditing working papers, audit preparations etc., the next step is to proceed with the examination of accounting entries passed in the books of account during the period under review.  In this step the auditor has to check the entries with its supporting documents to determine the accuracy and authenticity of the entries passed by verifying the vouchers, bills and other supporting documents.  This process of checking the evidence of the entries called vouching.  It may related to cash as well as trading transactions.

Auditor is required to certify the financial statements prepared by the accountant as the statement shows the true and fair view of the results of operations and the state of affairs of the business.  Unless he tries to establish the accuracy and authenticity of all the transactions recorded in the books of account, auditor will be falling from discharging his duty.  The exercise of establishing and verifying the accuracy and authenticity of the accounting entries passed in the book of account with reliable evidences are technically called 'vouching'.  It means vouching is the testing the truth of all the entries made in the book of accounts.

Definition of Vouching

Some of the important definitions by well known authors are giving below:

Lawrence Dicksee had defined vouching as an act of comparing entries in the books of accounts with documentary evidence in support thereof.

Ronald A. Irish has defined vouching as a technical term which refers to the inspection by the auditor of documentary evidence supporting and substantiating a transaction.

According to F R M De Paula, Vouching does not mean merely the inspection of receipts with the cash book, but includes the examination of the transactions of a business together with documentary and other evidence of sufficient validity to satisfy an auditor that such transactions are in order, have been properly authorized and are correctly recorded in the books.

According to Arthur W Holmes, Vouching is the examination of the underlying evidence which is in support of the accuracy of the transaction.  The process of vouching is intended to substantiate an entry by providing authority, ownership, existence and accuracy.

From the above definitions we can conclude that vouching is a method of examination to not only substantiate an entry in the books of account with documentary evidences, but also to see that these evidences are adequate, reliable and really connected with the business. For this, the auditor should go beyond the books of account i.e. he should go to the very source of the transaction to see that it is related to the business and is properly authorized.

Objectives of Vouching


The main objectives of vouching are:

  • To examine the accounting entries recorded in the books of accounts with reference to documentary evidence known as vouchers.
  • To examine the authenticity of the transactions recorded in the books of account.
  • To examine the adequacy and reliability of documentary evidence.

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    • profile image

      sujan 5 years ago

      its not so proprer

    • profile image

      sdaF 5 years ago

      nice1

    • profile image

      siddiqa 5 years ago

      good, i undersatand

    • profile image

      Govind kumar pandey 5 years ago

      It is a very nice and much better to understand topics.

    • profile image

      Rabia anum 5 years ago

      gd and nice

    • profile image

      sudheer 5 years ago

      not bad but its very easy ya

    • profile image

      cyprian 5 years ago

      its the best

    • profile image

      rubi 5 years ago

      Thanks. I got it

    • profile image

      kunal 5 years ago

      i understand very well. Thanks.

    • profile image

      Rana Ammar 5 years ago

      i understand ,niceeeeee lecture

    • profile image

      arbind 5 years ago

      very simple to understand..very easy to learn.

    • profile image

      ujjal 5 years ago

      objective are written to short .

    • profile image

      akansha raina 5 years ago

      good one..thenx alott,easy to understand

    • profile image

      anupriya pandey 4 years ago

      is't very gud. i understand about it.thankkkkkkkkkk's for giving me right answer.

    • profile image

      akriti kashyap 4 years ago

      thanks for giving us good knowledge

    • profile image

      muzamil 4 years ago

      thanks

    • profile image

      naaz basu khan 4 years ago

      yupee its simple and easy to learn

    • profile image

      punnagai 4 years ago

      explain d meaning f vouching

    • profile image

      bilal shinwari 4 years ago

      simple nd mind attracting...tnx

    • profile image

      nandhu 3 years ago

      am really under stand the meaning simple and best

    • profile image

      Ajit Gupta 3 years ago

      REALLY fascinating and easy to understand.

    • profile image

      priya 3 years ago

      very useful

    • profile image

      subi 3 years ago

      plz explain steps of voching also

    • profile image

      Azhar khan 3 years ago

      Better

    • profile image

      jot aman 2 years ago

      very nice..........

    • profile image

      Nagaraju S G 2 years ago

      nice........... i got it, thanks

    • profile image

      anjalithakur 24 months ago

      Thnx it is better explain the meaning

    • profile image

      raffath 20 months ago

      Thanks......nice

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