Vouching is an examination and verification of the authority and authenticity of transactions as recorded in the books of account. On the basis of vouchers, an auditor should satisfy himself that documentary and other evidence of sufficient validity is available in  order.

It is widely felt that vouching is an essence of auditing. It is the foundation and the first step of auditing. It is essential therefore that due care and attention is given to vouching function in auditing. While vouching, an auditor should compare entries with related vouchers and  ascertain the genuineness and validity of voucher.

POINTS TO BE CONSIDERED WHILE VOUCHING:- following points must be considered while vouching:-

  1. The name of the party to whom the voucher is addressed.
  2. The date of voucher.
  3. The nature of transaction because the type of voucher is to be prepared accordingly.
  4. Whether the voucher has been passed by proper authority.
  5. The amount of voucher is clear.
  6. Must be supported with the evidence.
  7. Must have voucher numbers on vouchers.


  1. To ascertain the truthfulness of the transactions.
  2. To establish that all transactions which are not related to business have  been correctly recorded.
  3. To check that those transactions which are not related to business, are not recorded in the books of business.
  4. To determine the validity of the documentary evidence.


Vouching should be clearly distinguished from verification. Vouching only means testing the truth of items appearing in the books of accounts.

Verification of assets implies an inquiry into the value, ownership and title, existence and possession. After vouching is completed, it is the duty of the auditor to verify by actual inspection or otherwise the existence of the assets. Simply because there is a documentary evidence or purchase of machines, it is not sufficient and is not a proof that the asset is in fact in the possession of the company on the date of balance sheet. This process of checking is called verification. Verification is thus the procedure by which the auditor satisfies himself about the actual existence, possession and ownership of the assets. If he fails to verify, he will be held liable.


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