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.

An auditor should keep in mind the following special points while vouching payments:-


  • Payment is properly authorized.
  • Each worker is paid the correct amount.
  • No fictitious names of workers are included.
  • There is no falsification of wage records.
  • Payment of wages is properly recorded.


  • Purchases are supported with cash memos or invoices.
  • Goods have been actually received and that included in stock.
  • He should check goods received book.

PURCHASE OF CAPITAL GOODS:- Like plant and machinery, land and building and other fixed assets, the auditor should check :-

  • Purchase order of the assets.
  • Contract with the supplier in respect of the assets.
  • Pre-delivery inspection report.
  • Invoice etc.

INVESTMENTS:– Auditor should check:-

  • Investment register.
  • Bought notes.
  • Counter foil of cheques issued to brokers.
  • Correspondence with the companies in which share have been purchased.

SALARIES:– Salary register should b e examined to see the amount paid every month.

TRAVELING EXPENSES:–  Rules relating to payment of traveling expenses to staff and purpose of travel along with vouchers should be examined by the auditor.

INSURANCE PREMIUM:- Insurance policy documents along with premium payment receipt should be examined by the auditor.

PAYMENT OF TAXES:– Payment on account of income tax, sales tax, service tax and excise duty etc. should be checked with copies of challan forms and assessment orders.

OTHER PAYMENTS:– Other payments like repair and maintenance, office maintenance, telephone expenses, staff welfare expenses, business promotion expenses, advertisement expenses, conveyance expenses, bank charges, printing and stationery expenses, postage and courier expenses and other petty cash payments should be examined by the auditor in relation to their supporting vouchers.


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