The techniques of vouching in respect of the important items which usually appear on the
debit side of the cash book.Opening Balance: It should be checked with the balance shown in the audited balance sheet of the previous year. Reference should be made to the audit working papers to see if the closing balance of the cash shown in the balance sheet is the result of the many balances.
Cash Sales: The required evidence for vouching the cash sales would depend upon the procedure for recording the cash sales in the book. Usually carbon copies of the cash memos or cash sales invoice would support such entries which should be checked. Where automatic tills are in use the entries in the cash book should be checked from the till records.
If automatic cash register is maintained resort should be made to the summaries. The basis of charging prices to the customer against cash sales should be inquired into and documentary evidence in this respect must be examined. A test check the extent of which will depend on the efficiency or otherwise of the system of internal control with the goods outwards book should also be carried out. So this is the way the auditor vouch the books.
debit side of the cash book.Opening Balance: It should be checked with the balance shown in the audited balance sheet of the previous year. Reference should be made to the audit working papers to see if the closing balance of the cash shown in the balance sheet is the result of the many balances.
Cash Sales: The required evidence for vouching the cash sales would depend upon the procedure for recording the cash sales in the book. Usually carbon copies of the cash memos or cash sales invoice would support such entries which should be checked. Where automatic tills are in use the entries in the cash book should be checked from the till records.
If automatic cash register is maintained resort should be made to the summaries. The basis of charging prices to the customer against cash sales should be inquired into and documentary evidence in this respect must be examined. A test check the extent of which will depend on the efficiency or otherwise of the system of internal control with the goods outwards book should also be carried out. So this is the way the auditor vouch the books.
