Download Vouching of Telephone Expenses PDF

TitleVouching of Telephone Expenses
Tags Types Business Economics
File Size85.0 KB
Total Pages11
Table of Contents
                            Vouching:-
Vouching for Telecommunications
Reasons to Conduct a Telephone Bill Audit
Produce savings:
Telephone Bill Tariff
Telecommunications Consulting Services
DO YOU CONTROL YOUR TELECOM EXPENSE?
                        
Document Text Contents
Page 1

MBA (Banking & Finance)
Auditing

Introduction of the topic

Vouching:-

According to L. R. Dicksee

“Vouching consists of comparison of entries in the books of accounts
with documentary evidence in support thereof.”

Ronald A. Irish

“Vouching refers to the inspection by auditor of documentary
evidence supporting and substantiating a transaction.”

Auditors use the word "vouching" to describe a type of evidence-
gathering activity auditors apply in the substantive testing stage.
Vouching is the process of the auditor matching documentary evidence (of
an account balance or a transaction) with the details recorded in
accounting records and provides evidence as to the completeness, validity
or accuracy of an account balance, or underlying class of transaction.

When an auditor requires evidence of the validity of an account
balance or class of transaction, the auditor gathers evidence that details
of the account balance, transaction or economic event recorded in the
accounting records is supported by documentary evidence. i.e. the auditor
vouches from the accounting records to the documentary evidence (or a
"top down" approach). For example, the auditor obtains evidence relating
to the validity of purchases recorded in a client's inventory records by
vouching from details recorded in the inventory records (e.g. the
supplier's name, date purchased, quantity purchased, and the amount of
the transaction) to details on suppliers' invoices.

When an auditor requires evidence of completeness, the auditor
gathers evidence that the account balance, transaction or underlying
economic event referred to in the documentary evidence has been
included in the accounting records. i.e. the auditor is said to have vouched
from the documentary evidence to the accounting records (or a "bottom
up" approach). (This "bottom up" approach is sometimes referred to as
tracing rather than vouching.) For example, the auditor obtains evidence
relating to the completeness of a client's inventory records by tracing
details on the suppliers' invoices (e.g. the supplier's name, date
purchased, quantity purchased, and the amount of the transaction) to the
details recorded in the inventory records.

When the auditor requires evidence of accuracy, the auditor
vouches from the accounting records to the documentary evidence,
although with accuracy, the direction of the vouching is not as critical. For
example, the auditor obtains evidence relating to the accuracy of a

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