Checklist for cash vouching

The discount allowed to customers should be properly authorized by a responsible officer. But all this depends upon the efficiency of the auditor. Vouching is a sort of preliminary work which forms an important part of audit work.

To ensure that there should be no violation of Income Tax rules as payment of loan exceeding Rs.

Vouching of impersonal ledger

Investments :. The Auditor should verify that the rent for all the twelve month is received or not. Commission received : For this, the agreements between the client and the parties from when it is receivable should be examined to verify the terms of commission, its rate etc. To establish that no transaction which is not connected with the business has been recorded. Receipts from hire purchase : The hire purchase agreement should be checked in order to ascertain the duration of the agreement, the amount of instalments, total number of instalments, payment by the close of period the accounts of which are under audit. Cash received should be entered on the same date when the cash is actually received. While doing so, he should enquire as to whether all receipts are in printed forms, whether counterfoil receipts are used or a system of carbon copy is used, and all receipt books and all receipts are separately and consecutively numbered.

He can verify the cash receipt in the cash book with the counter foil or carbon copy of the receipt issued to the party. Before setting the programme for vouching the cash book, an auditor should examine carefully the whole system of internal check in operation in respect of cash transactions.

Explain the vouching of cash book

If there are certain entries in cash book for which receipts have been issued, they should be carefully checked. Issuance of receipt for lesser amounts than amount actually received. But all this depends upon the efficiency of the auditor. Along with cash receipt, the rule for granting cash discount should be examined. Payment to workers who were absent from duty. To see that all receipts and payments of cash are actually and properly recorded. He should satisfy himself the bad debt written off are authorized by a responsible person. If investments are sold ex-dividend, he has to see that the dividend has been received if declared.

Freight inward charges, installation charges, erection and commissioning charges should be capitalized. Interest and dividends : Interest and dividends received from investments should be vouched in the following manner: i receipts on this account should be checked with the counterparts of the interest and dividend warrants or the letters along with the cheques.

For missing vouchers, the auditor should satisfy himself with regard to the reasons of their being lost. All vouchers have been properly filed, serially numbered and arranged in order as it saves time in finding out a particular voucher in checking. Ensure that the unused counterfoil receipts are kept in safe custody.

Payment of wages at higher rate than allowed.

vouching of cash sales

The purpose of this segregation of duties is to minimize the opportunity for an employee to misappropriate funds and avoid detection. An auditor can resort to test checking only if he has satisfied himself that there is an efficient system of internal check.

vouching of cash receipts ppt

Internal Check System: Before starting the vouching of cash book, the auditor should enquire about the internal check system in operation If there is no well organized internal check system, there are lot of chances of misappropriation of cash.

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Auditing: Lesson 4 Vouching