Unit-5.pdf - 'oucning and Verification 4.9 1 2 3 4 5 6 TERMINAL QUESTIONS What is meant by Vouching What are its objectives Explain the importance of

Unit-5.pdf - 'oucning and Verification 4.9 1 2 3 4 5 6...

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'oucning and Verification - 4.9 TERMINAL QUESTIONS 1 What is meant by Vouching? What are its objectives? Explain the importance of vouching. . . 2) "Vouching is the essence of audit". Explain the statement and discuss the importance of vouching. 3) What is a voucher? How would you classify it? What are the special points an auditor should bear in mind while examining a voucher? 4) How would you vouch the following items: (a) Cash Sales, (b) Receipts from Debtors and (c) Sale of Investments. 5) "In vouching payments, the auditor does not merely seek proof that money has been paid away". Discuss and explain the general considerations to be borne in mind by the auditor while vouching cash transactions. 6) How would you vouch the following items: (a) Cash purchases, (b) Payments to Creditors, (c) Payment of Wages. (d) Travelling Expenses ant; (c) Petty Cash? Note : These questions will help you to understand the unit better. Try to write answers for them, but do not submit your answers to the University. These are for your practice only. I UNIT 5 VOUCHING OF TMDING SACTIONS AND IMPERSONAL LEDGER , Structure 5.0 Objectives 5.1 Iilboduction 5.2 Credit Purchases 5.3 Purchases Retul~ls 5.4 Credit Sales 5.5 Sales Returns 5.6 Goods Sent on Consignment 5,7 Packages and Empties 5.8 Journal 5.9 Vouching of Impersonal Ledger 5.10 Outstanding Assets and Liabilities 5.10 1 Outsiand~ng Assets 5.10.2 Oustandi~~g L~ab~lrtics 5.1 1 Contingent Liabilities 5.12 Apportionment of Expelldinlre Between Capital and Revenue 5.13 LetUsSulnUp 5.14 Key Words 5.15 Answers To Check Your Progress 5,16 Telininal Questions 5.0 OBJECTIVES .After studying this unit, you should be able to : vouch credit sales and credit purchases vouch packages and empties vouch journal entries vouch outstanding asscts and liabilities vouch contingent liabilities vouch capital and revenue. 5.1 INTRODUCTION ..- . In Unit 26 you have learnt the meaning, definition, objectives and importance of vduching and also the process of cash receipts and payments, In this unit, we wili.discuss the process 1 of vouching trading transactions which do not involve immediate movement of cash and the 1 vohching of impersonal ledger which contain nominal and real accounts. 5.2 CREDIT PUFCHASES Goods purchased on credit are entered in the Purchases Book. The object of vouching credit purchases is to see that the auditor's client pays for only those goods which have been actually received in the business and that the goods are not misappropriated. . Before starting vouching of credit purchases, the audito~ should examine the system of internal check in operation about purchases. If the system is ineffective he should exel-else I great care and e,xhaustively check the Purchases Book and related ledger accounts. The auditor should also make inquiries about the procedure of placing orders, receiving goods checking invoices, etc. You will recall that a good syspm of internal check about purchases should have the following salient features :
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Vouching and Verification . 1) All the orders for purchase of goods should be recorded in 'Purchase orders Book and
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  • Spring '18
  • sai sekhar
  • Balance Sheet, Capital Expenditure, Expense, Generally Accepted Accounting Principles, invoice

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