The main objectives or importance of vouching can be highlighted as follows:
1. To Ensure Accuracy And Genuineness
Vouching is the act of examining the records of business transactions. It helps to ensure the genuineness and accuracy of the entries.
2. Detection Of Errors And Frauds
It carefully examines each and every entries and documentary evidence in the books of accounts. So, it helps to track the errors and frauds committed in the accounting process.
3. To Discover Missing Transactions
Another objective or importance of vouching is that it helps to discover missing or unrecorded financial transactions. Auditor checks all the vouchers and related documents to ensure the completeness and correctness of postings made by the accounting personnel.
Vouching ensures the validity and authenticity of supporting documents such as bills, invoices, bank slip, receipts, minutes etc.
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5. Base For Auditing
Vouching is very important because it provides a base for auditing. It simplifies the work of final audit.
