Write short note on Vouching of Cash Purchases and Vouching of Wages and Salaries.

Vouching of Cash purchases

Examine the payment in the cashbook: Payment for cash purchases should be vouched against the cash memos or invoices issued by suppliers.

Examine stock ledger: The entries in stock ledger should be verified as an evidence of the goods having actually been received.

Routine checking : The auditor should perform routine checks to ensure arithmetical accuracy of transactions recorded.

Vouching of Wages and Salaries

Examine the payments shown in the cash book: The auditor should examine the payments made for wages and salaries and shown in the cash book by reference to pay roll summary or wages sheets or salary register.

Examine the pay-roll summary : An auditor while examining pay-roll summary, pay special attention to the following points:

Check the computation of wages and salaries. Ensure the rate or amount of wages and salaries is in accordance with legal or contractual requirements.

Check the statutory deductions such as income-tax, provident fund and premium for group insurance schemes made from the wages with reference to the returns submitted to the concerned authorities and receipts/acknowledgments issued by such authorities.

Examine other deductions such as recovery of housing loan with reference to relevant registers.

Perform routine checks to verify the arithmetical accuracy of the pay roll.

Compare the signatures of a sample of employees, indicating acknowledgement of receipt of wages for two or more months. If payments have been made to a representative of a worker, the auditor should examine authority letters.

In order to ensure that no dummy workers are included in the pay roll summary, the auditor should check the names of some of the workers as mentioned in the summary with job cards.

In case of employment of casual labor, the auditor should ascertain whether proper authorizations have been obtained for such employment.

Enable registration in settings - general
Compare items
  • Total (0)