If automatic cash recording machines are being used by the entity, the auditor should use locked in totals of cash received as shown by the machine for reference. h. Audited accounts are useful for the government while granting subsidies etc. Vouching of Cash Payments (Credit Side of Cash Book) All the payment made to creditors, expenses incurred in cash and all other payments done appear on the credit side of cash book and the Auditor is required to vouch cash payments because chances of cash misappropriation are very high. Cash Sales copies of cash memos 3. sales tax and wealth tax liability of the business. Posting of all vouchers in ledger account from cash and bank book, sales register, bills receivable register, sales return register and journal should be verified. Vouching means the step of investigating the vouchers,i.e.narrative evidences in back of transactions.it is used to assure that assorted action for the course is genuinely and adequately recorded in books of accounts. Debtors name agrees with the sales return book. Cash Sales 3. Cash Received from debtors receipts, bank pass book 4. ADVERTISEMENTS: In this article we will discuss about the vouching of various transactions for auditing purpose:- 1. Vouching of Sales Book The existence of a second internal check in respect of sales is highly essential. Advanced Accountancy This note covers the following topics: Auditing, Advantages or Necessity of auditing, Types of audit, Vouching, Characteristics of Vouching, Special Features in respect of Audit of Co-operative Societies Verification of opening balances, castings, balances carried forward should be carefully examined. Sales to sister concerns should be carefylly examined Check the casting of sales book Vouching of Sales returns Vouching: Cash sales, Receipts from Debtors, Cash purchases, Payment to creditors, payment of wages Audit of Sales vouching Examine the internal control over receipts from sales. Sales Book Vouching Credit sales are recorded in the Sales Book. Examining cut off points Matching entries in the sales book against renumbered sales In the company’s cash book, the auditor identifies entries of cash sales, receipts from creditors, interest income, dividend income, mortgage payments, fixed asset sales and accounts receivable. Income Tax Refund 10. The circumstances that may motivate a sole proprietorship concern to get its accounts au­dited are: ADVERTISEMENTS: 1. He should check some of the invoices to find out that-nitrates as mentioned in the purchase orders from the customers have been charged in the invoices and the rates agree with those in the price list. 9.Sales of fixed assets. 20 Sales Page Examples That Help with Conversions and Sales Last updated on September 11, 2020 by Ted Vrountas in Landing Page Examples The sale — it’s a marketer’s most coveted conversion, and you get this on the sales page. Gkseries provide you the detailed solutions on Auditing as per exam pattern, to help you in day to day learning. Name of client. Auditing – vouching of ledger There are two types of ledger which are general ledger or nominal ledger which represents real accounts or nominal accounts so the work of an auditor is to vouch the items appearing in the impersonal ledger thoroughly so that there was no little chance of manipulation by fictitious entries of expenses can be eliminated. Ans. These quiz objective questions are Petty Cash Book 2. (VOUCHING OF RECEIPT SIDE OF CASH BOOK) नकद ब क र क प रम णन (Vouching of Cash Sales) नकद ब क र स प र प त रकम क गबन करन बड आस न ह त ह , अत नकद ब क र क प रम णन 1 नकद ब क र क सम बन ध 2. Date falls within the financial period. Related article 5 Types of Due Diligence Services, and Benefits Importance of Vouching Evidence : One of the main benefits of the vouching is that all the documentary evidence which substantiate transactions are thoroughly examined, which helps in identifying the genuineness of the transaction. Vouching of Cash Payments (Credit Side of Cash Book) All the payment made to creditors, expenses incurred in cash and all other payments done appear on the credit side of cash book and the Auditor is required to vouch cash payments because chances of cash misappropriation are … Auditing of Export Sales. If there is any profit or loss, that should be adjusted with capital reserve account. Purchase of Investments 5. While vouching the credit sales, the creditor will: He should check the entries in the order book with the copies of the orders received directly from customers or through the traveling agent. To […] 1. Vouching of cash sales Examine cash book: The auditor should examine the cash book with reference to daily cash sales summary and copies of cash memos. As vouching examines the truth of the transactions entered in the company’s accounts, it is known as an acid test of the audit. Underwriting Commission on Shares 4. The auditor has to guard against the omission of cash receipts and has to rely considerably on the system of internal check in force. Definition: Vouching, widely recognized as “the backbone of auditing,” is a component of an audit seeking to authenticate the transactions recorded in a firm’s book of accounts. Procedure in regard to vouching … Sales tax Income tax While vouching, how will the auditor ensure himself that all credit sales transactions have been recorded by the entity? Q. ADVERTISEMENTS: Here is a compilation of essay topics on ‘Auditing’ especially written for school and college students. i. Sales of Fixed Assets: To examine that proper account has been credited with the amount. The auditor should have more technical and careful while vouching the credit sales as the documentary evidence. 2. This item may be vouched with correspondence, auctioneer’s account, sale contract, Minutes book or any other evidence available. Vouching of Purchase Return Book There are times when due to the quality of purchase goods or due to excess supply of ordered goods or any other reasons, goods are returned back to supplier. State the circumstances that may moti­vate a sole proprietorship business to get its accounts audited by an auditor. Definition in the words of J.R.Batliboi , “Vouching means testing the truth ofitems appearing in the books of original entry” 2. Vouching 1. Based on data released by Directorate General of Commercial Intelligence and Statistics (DGCI&S), export sales by Indian exporters amounted to US$ 214.1 billion for the nine months ended It can be used by insurance companies … Whether checked by staff member & it bears his initial in token of internal checking. What is Cash Book Definition, Explanation and Format of Cash Book, Vouching Entry, Receipt or Debit side Cash Sales bills Receivable 2021 Vouching 2.1 Vouching includes the following a) receipts and payments of Cash book and Bank book including Petty Cash book b) sales c) purchases d) credit notes e) debit notes f) register of postage g) register of hundi paper Proceeds of Bills Receivable B/R book Dividends from Investments 6. Vouching the Receipt side of Cash book Vouchers 1. Sale of Scraps 9. We provide all important questions and answers from chapter Auditing. Sale of Investments 7. The other names of Purchases Ledger are Purchases Day Book, Purchase Journal, Bought Book, Bought Daily Book or Invoice Book. Rent from Immovable Properties 8. Bad […] Examine … 2. Vouching of Purchases Book Purchases Book is meant for recording transactions relating to credit purchases of goods. Thus sales ledger /day book/journal record transactions relating to credit sales. Test check the … Advanced Accountancy This note covers the following topics: Auditing, Advantages or Necessity of auditing, Types of audit, Vouching, Characteristics of Vouching, Special Features in respect of Audit of Co-operative Societies, Banks, Company Auditor. Posting of all vouchers in ledger account from cash and bank book, sales register, bills receivable register, sales return register and journal should be verified. The main objectives of vouching sales book is to see that all sales books and that the goods entered in these books are actually sold by business and the client pays money for those goods delivered to him. VOUCHING OF CASH SALES :-Cash sales can be vouched by the auditor in the following way : 1. The vouching of the receipts side of the Cash Book is more difficult than the payment side, since only indirect evidence can, as a rule, be obtained. yr 2. The Auditor needs to verify the following points − A debit note or purchase return invoice should be prepared mentioning the original purchase invoice number, quantity, price, applicable taxes, etc. Examine authorization level for making cash sales and receiving amount therefrom. Opening Balance cash book of pre. Verification of opening balances, castings, balances carried forward should be carefully examined. Internal Check :-Auditor should evaluate the internal check and if it is proper system then he should rely on it.