WHAT IS THE IMPORTANCE OF VOUCHING IN AUDITING?
vouching is the verification of entries in the books of accounts by examination of documentary evidence or vouchers such as invoices, debit, and credit notes. it means testing the truth of items appearing in the books of original entry. in vouching we try to verify if the numbers in ledgers reflect the real transaction and they are not just numbers. therefore in vouching the auditor trace the transaction from the financial statements of books of accounts to supporting documents such as receipts and invoices. for example if in the books of accounts an asset such as a car is recorded the auditor will trace the amount of the recorded car to documents that support the purchase of cars such as car registration cards and import documents to verify if the car was actually bought and is actually owned by the audited entity. The following is the importance of vouching in auditing It helps the auditor to verify if the transaction in the books of accounts or accounting ledgers actually occu...