Voucher: Definitions, Principles of Vouching

A voucher is a written document to be used in support of entry made in the books of account.

Some important definitions:

ACCORDING TO JOSEPH LANCASTER, “A voucher may be defined as any documentary evidence by which the accuracy of books entries may be substantiated.”

ACCORDING RONALD A IRISH, “A voucher may be a receipt, an invoice, an agreement, a written requisition slip or in short, any suitable written evidence which confirms a written transaction.”

Thus on the analysis of above definitions, are concludes that:

1. Vouchers are documentary evidence.
2. Vouchers are written evidence.
3. Voucher is documentary evidence in support of any entry appearing in books of accounts.
4. Voucher may be a receipt.
5. Voucher presents the full description of transactions.
6. With the help of a voucher, the accuracy of book entries may be substantiated.

Principles of Vouching

While vouching the transactions, the auditor should keep in his mind the following point while examining the various vouchers.

1. In the name of employer:

The voucher should be made in the name of the employer of the concern.

2. Printed:

The voucher should be on a printed form.

3. Serial number:

All the vouchers should be consecutively numbered and filed in order of the entries in the various books to a void wastage of time to find a particular voucher.

4. Date:

The auditor should check date, name of party to whom the voucher is issued.

5. Stamped:

The voucher which is examined by the auditor should be cancelled by a stamp so that it cannot be produced again.

6. Related with the firm:

The auditor should see that all the vouchers are relevant to the business conducted special attention should be given to those vouchers which are in the name of partners, director or officers of the company.

7. Special mark:

Auditor should mark a special mark on those vouchers which require detailed checking and need further clarification.

8. Signature of responsible officer:

The auditor should see that every voucher is passed correctly responsible and senior officer of the concern and the rubber stamps and signatures should be checked.

9. Revenue stamp:

Auditor should check that every voucher bear proper revenue stamp or not.

10. No help of the employees:

The auditor should not take the help of employees of the concern while checking the vouchers.

11. Payment for the concern:

The auditor should see that the payments made by the concern related to the business or not.

12. Related to the same year:

The auditor should see that the vouchers are related to the same year in which auditing is going on.

13. Amount in words and figures:

The auditor should see that the amount written in words and figure should be same.

14. Invoice-no voucher:

The received invoice should not be accepted as voucher. Because chances of double payment may be there. Once in the form of credit purchase and second time in the form of cash purchases.

15. Mutilated voucher:

If the voucher is mutilated or there is cutting in the figure of amount, then the auditor should not accept such vouchers unless signed by responsible officer of the concern.

16. Pad paper-no voucher:

Pad paper should not be accepted as vouchers because the chances of dishonesty may be there.

17. Time of payment:

While checking the vouchers for insurance rates, taxes etc. the auditor should see the period for which the payment has been made. If the payments are made in advance then the auditor should see that correct adjustments are made or not.