vouching summary

7/25/2019 Vouching Summary

1/7

CA. Nitin Gupta Rathore Institut

RATHORE INSTITUTE

Auditing Assurance

BY CA. Nitin Gupta

How to prepare the chapter Vouching

Basic points covered in vouching of all transactions:1) Examine voucher of the transaction, it should be properly dated, serially numbered an

duly authorized.

2) Examine the calculationof voucher.

3) Examine proper recording of transaction. Related accounts are properly debited

credited.

4) Examineposting in relevant ledgers.

5) Examine cash book. (Receipt/ Payment)

6)

Examine acknowledgementreceived (in case of payment)/ provided (in case of receipt

Summary of Vouching

Items Procedures for vouching Relevant documentary evidence

Credit Sales Examine sales book Sales Book

Examine sales invoice Sales invoices

Examine numerical sequence of

source documents generatedwithin the entity

Goods outward notes

Examine treatment of additionalcharges and trade discount

Routine checking

Examine cutoff procedures Sales vouchers at the beginning andend of current period

Goods on saleor return basis

Examine memorandum book Memorandum Book


2/7


Examine inclusion of goods onsale or return basis in inventory(If sales were not approved)

Sales Book & Debtor ledger (If sale isapproved)

Statement of customers givingdetails of inventory.

Examine the case where saleswere approved. (It will beconsidered as sale)

Sales book

Goods onconsignment

Examine consignment sales book Consignment sales book, Copy ofPerforma invoices

Examine account sale (Periodicalstatement received fromconsignee)

Account sales

Ensure posting into relevantledger accounts

Ledger of consignment account,nominee account and relevantnominal accounts

Examine valuation of closingstock. (Loading should not beincluded in it)

Examine commission paid toconsignee

Agreement with consignee.

Sales Return Examine sales return book, Storeledger.

Sales return book, Store ledger.

Examine credit notes (issued byentity to debtor who has returnedthe goods)

Credit notes. These should beserially numbered.

Examine cutoff procedures Sales return vouchers at thebeginning and end of current period

CreditPurchase

Examine purchase book Purchase book

Examine purchase invoice Purchase invoice

Examine numerical sequence ofsource documents generatedwithin the entity

Purchase requisition , Purchaseorder, Goods received notes

Examine cutoff procedures Purchase vouchers at the beginningand end of current period

Goods purchased must not be forpersonal use of directors &officers

Purchase Examine purchase return book Purchase return book


3/7


returnExamine debit notes (issued byentity to creditor to whom goodsare returned)

Debit notes. These should be seriallynumbered.

Examine cutoff procedures Purchase return vouchers at thebeginning and end of current period

Cash sales Examine cash book Cash bookExamine cash memos Daily cash summary, Cash memos

Routine checking Salesmens summary, Goodsdelivered summary

Rent received Examine cash book Cash book

Examine rent receipts Rent receipts

Special attention towards rentoutstanding. Lease deeds/Agreement

Routine checking List of property provided on rent,Recording, posting in relevantledgers.

Dividend &interestreceived

Examine cash book Cash book

Examine type of investments Schedule of investment

Examine dividend warrants Dividend warrantsSpecial attention towards interestoutstanding

Schedule of investment, loans anddeposit

Examine recording of dividendand interest at correct amounts

Investment certificates

Examine compliance with AS-9

Commissionreceived


Examine calculation of

commission

Commission agreement

Examine commission outstanding

Examine compliance with AS-9

Bad debtrecovered


Verify bad debt dividend Dividend warrant of officialreceiver, correspondence withofficial receiver.


4/7


Ensure proper treatment instatement of P/L

Sale of scrap Examine cash book Cash bookExamine sales invoice Sales invoice

Review cost records and financialrecords

Cost records, financial records

Analytical review procedures Past records

Examine management procedureto identify scrap

Insuranceclaim


Examine copy of claim lodged

with GIC

Claim copy

Valuation of loss Report of surveyor

Examine correspondence withGIC and agent

Copy of correspondence

Receipts ofcapitalsubsidy


Examine the correspondence withthe Government and the copy of

application

Correspondence with Government

Note the conditions attached withgrant

Copy of application, Documentsrelated to grant of subsidy

Ensure compliance with AS-12

Sale ofInvestment


Examine Brokers Note Brokers Note

Authorization of sales AoA

Compliance with AS-13

Wages &Salaries


Examine the pay-roll summary Pay-roll summary, Job card,Relevant ledgers

Examine employee data(employee name, wage rate,attendance summary)

Employee register.

Examine unclaimed wages Schedule of unclaimed wages


5/7


Travelling Exp Examine cash book Cash book

Examine standard form forclaiming reimbursement

Standard form for claimingreimbursement

Examine Directors travel rule AoA

Examine relevant documents Ticket of mode of transport used,Hotel bill.

CustomDuties


Examine Bill of Entry Bill of Entry

Commission paid to clearing andforwarding agent.

Agreement with agent

Examine rate of duty Custom act and Custom tariff act

Examine duty paid Acknowledgement from Customdepartment

Examine provisional assessment(In case of any dispute)

Provisional assessment order

Verify the claim of duty drawback

Excise Duties Examine rate of duties Central excise tariff act.Examine payment of duty Challan, Personal ledger account

(PLA)

Examine cash book Cash bookEnsure proper provisioning ofgoods not released

Profit & Loss account

Ensure CENVAT credit has beenadjusted while claimingdepreciation on fixed assets.

Remunerationpaid toDirectors

Examine the entitlement AoA

Examine legal provision 309(3) (4), 309(2), 198, 310Examine relevant documents Agreement, Attendance record,

Bank Statement

Advertisementexpenses

Obtain advertisementschedule/register

Schedule / Register

Examine advertisement contract Advertisement contract

Examine statement of accounts Statement received from agency

Vouch the payment Bank Statement


6/7


Examine proof of advertisement Copy /Video clip/Audio clip ofadvertisement.

It should be as per the object ofthe entity

Payment ofIncome Tax

Examine Cash book Cash book

Examine receipt of challan Challan

Examine documents Assessment order, Demand order,Ledger

Retirementgratuity

Ascertain the requirement to pay Legal provision of gratuity, Contract/Agreement with employee

Examine service contract

Examine the validity of the basison which gratuity is payable tothe employee

Recomputation

Ensure compliance with AS-15

Preliminaryexpenses

Examine nature of preliminaryexpenses. (Registration fee, Costof printing of documents, StampDuty). Ensure that other expenses

are not included in it, likeUnderwriting Commission,Brokerage.

Disclosure of preliminary exp inprospectus

Prospectus

Examine Board Resolution Minutes of BM

Research &developmentexpenses

Examine R & D activity relates tobusiness of the entity

MoA, AoA, BoD resolution

Examine Cash Book Cash BookExamine compliance with AS-26

Ascertain nature of R & D work, itshould be relevant to entitysobject.

Examine MoA (Object clause)

Examine Board Resolutionauthorizing R &D.

Minutes of BM

Examine these are consideredwhile provisioning of Income Tax.

Computation of Taxable income asdeduction is available for R & D exp.


7/7


OUR PAST RESULTS OF AUDITING & ASSURANCE

NAME MARKS NAME MARKS

RICHA SHARMA 76 (ROLL NO 309097)

41STRANK

AJMER DIN 64 (ROLL NO-

229372)

PUJA SINE 64

ANISHA 75 (ROLL NO-195101) NEHA JAIN 64

PRADEEP KUMAR 74 (ROLL NO-256971) RISHABH GAUR 63

YOGENDER BANSAL 73 (ROLL NO-349507) NITIN JAIN 63

MAYANK GOEL 72 (ROLL NO-238011) AKSHAY JAIN 62 (ROLL NO-

237763)

LAKSHAY JAIN 72 (ROLL NO-355600) PRAVESH PANGENI 61

SUNIL BUDATHOKI 71(ROLL NO-357503) DHRUV KANT 61 (ROLL NO-

232062)

ANOOP KANSAL 70 GAURAV SAXENA 61 (ROLL NO-407917)

SIDDARTH KUMAR 70 GAURANG KAPOOR 61(ROLL NO-302323)

JAI PRAKASH SHAH 70 NEHA MISHRA 60 (ROLL NO-

405330)

HIMANSHU SRIVASTAV 70 (ROLL NO-240963) SWATI SINHA 60

SUJIT KUMAR 70 HIMANSHU GUPTA 60 (Roll No-408570)

TULSI GHIMIRE 70 ANUJ AGARWAL 60

SANDEEP MALHOTRA 69 ANSHU RAI 60

RAJ KUMAR 69 DHEERAJ SHARMA 60

SAURABH BANSAL 68 (ROLL NO-240856)

13thRank

BINOD PARAJULI 60 (Roll No-357647)

RANJIT ADHIKARI 68 SHILPI JAIN 60 (Roll No-362503)

PARTH AGARWAL 68 (ROLL NO-292046) TARUNA 60 (Roll No-366697)

MANISH DWIVEDI 68 RUPESH GUPTA 60

TANIKA NARANG 67 (ROLL NO-234348) UJWAL TIMSILNA 60

ANUPAM SURYA 67 YASH GUPTA 59(ROLL NO-231590)

ANKIT BHATIYA 67 PRADEEP KUMAR 59 (ROLL NO-

247528)

MOHIT SATIJA 67 RISHBH MISHRA 59

PIYUSH JAIN 67 (ROLL NO-246505) AKSHAT RASTOGI 59 (ROLL NO-

367516)

ANKUR Gupta 66 NIKHIL JOSHI 58

SANTOSH GYAWALI 66(ROLL NO-357509) HARCHIT SANAN 57NITIKA GUPTA 65 (ROLL NO-246888) SANDEEP CHATTARJI 57

PRAMOD POUDEL 65 HARSHI GUPTA 57

SUMIT 65 DEEPAK SINGH 57

ZEENA LAGE 64 AAKASH SRIVASTAV 56(ROLL NO-

362703)

MUKESH LUMAR 64 (ROLL NO-234028) Gaurav Arora 56(ROLL NO-

245862)

Anushk Kapoor 64(ROLL NO-242032) GURPREET SINGH 56(ROLL NO-

238865)

Many More..................