VOUCHING

Is a substantive audit procedure which deals with

examination of profit and loss transactions/items

Normally, extensive vouching exercise is done during

thedepth test/cradle-to grave test

Vouching enable the auditor to know whether the

transactions are genuine and valid to enable the auditor to
report on the financial statements

Salient point:

When vouching/examining a transaction, the essential points need

to be ensured:

The date of the voucher falls within the accounting period;

Voucher/transactions therein are duly and properly

authorized by the relevant signatory;

The transactions being examined belongs to the entity

and took place during the relevant period;

The transaction is recorded in the proper account and

revenue or expenses is properly allocated to the
accounting period;

All transaction which have actually occurred have been

recorded

The posting from the voucher of the amount needs to be

correctly taken in the final accounts, disclosed in
accordance with recognized accounting policies and
procedures.

The voucher that is being examined need to be properly

supported with all and relevant documents

VERIFICATION

Is a substantive audit procedure which deals with

examination of balance sheet transactions/items
whether they are assets or liabilities are properly
stated in the balance sheet

Also applies to profit and loss item to check the account

balances and their presentation

Verification process encompasses the inquiry into the

ownership/ title, existence, valuation, completeness and
presentation of assets and liabilities in the balance sheet.

Vouching is the substantive testing/examination of transaction at

their POINT OF ORIGIN
whereas Verification usually deals with the FINAL BALANCE in
the Final Accounts viz the balance sheet and profit and loss