The balance of cash book is directly posted to the trial balance. The receipts and payments are recorded in cash book. It is the foremost step for performing the auditing process. The cash balance on any day can be known from cash book. Sometimes, fraud may occur when payment received from a customer is misappropriated without making. Auditor should compare the cash memos with goods received notes.
Principles of vouching by nadeem ishtiaq edition 9th for the students who are learning. Steps in vouching receipts from debtors receipts issued auditor can vouch the receipt issued to debtors for collection of money. Receipt date auditor to make note of the date of receipt and compare with date in the cash book. Counter foil or carbon copies to be compared with entries made in cash book. Vouching of cash transaction is the most important job of an auditor. The auditors information source for vouching the bank reconciliation items is the cutoff bank statement.
Vouching of receipt side or debit side of cash book vouchers to. The main objective of vouching of purchases book is to see that all purchase invoices are entered in the purchases book, and the goods entered in the purchases book are actually received by the business and the client pays money only for those goods that are delivered by the supplier to him. The receipt side or the debit side of the cash book contains items such as opening. The vouching procedure in regard to cash sales should be on the. Vouching of the payment side of cashbook loans invoice scribd. An auditor should examine and understand the system and should pay attention in the following points.
Therefore, the auditor should ensure that all receipts have been recorded in cash book and no fictitious payments appear on the payment side of. The carbon copies or counterfoils of cash receipt book should be. Vouching of debit side of cash book or cash receipts auditing. Vouching of cash payments or credit side of the cash book.
Before setting the program of vouching, an auditor should inquire carefully into whole system of internal control. Vouching of cash receipts debit side of cash book opening balance of cash book. The auditor should ascertain that the system of petty cash is maintained on the imp rest system and note the amount of imp rest should be consistent and in line with the requirements of the company although it should not necessarily be rigid. Vouching of cash transactions cash book is the most important of the books of ac for any business.
Steps in vouching of receipts from debtors 1 examine. How to vouch the cash voucher in a shortest way youtube. Opening balance of cash book represents cash in hand at the start. Steps in vouching of receipts from debtors 1 examine the internal check system from audit au223 at ahmedabad university. Vouching of the payment side of cashbook cheque payments. As a first step, the auditor should examine the soundness of internal check system in this regard and in case he.
It is an important financial book for a business concern. Just mark the tick and move further without any dimaag khapai. A voucher may be a sales bill, purchase bill, payment receipt, payin slip, etc. In vouching, payments shown on cash book, an auditor should see that payment has been made wholly and exclusively for the business of the client and that it is properly authorized by the person who is competent to do so. Vouching of the payment side of cashbook free download as powerpoint presentation. Write short note on vouching of cash transactions and vouching of. Routine checking covers the checking of every carry forward, posting to ledger account and balancing of account. Since cash account is a real account, this ruling is followed, i. Cash book is one of the most important books of accounts. Vouching of cash payments credit side of cash book. Auditing vouching of cash transactions tutorialspoint. While vouching the cash purchases auditor should take the following steps.
During an audit of cash, the auditor is most concerned with the management assertion of. Errors and frauds arise mostly in connection with receipts and payments of cash by making misappropriations wherever possible. In a business concern, cash book is maintained to account for receipts and payments of cash. Vouching is an exploration of vouchers or narrative evidence such as sales and purchase invoices, payment slips. Vouching of cash transactions points to be considered.