Voucher

Voucher
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Q.What is Voucher What are the features of a valid voucher? Give instances where an auditor refuses to consider a stamped and signed voucher.

Ans.Voucher is defined as a documentary evidence in support of entries appearing in the books of account. A receipt, counterfoil of a receipt book, an agreement, a resolution passed by the Board of Directors, an invoice etc. are the examples of voucher.

Vouchers are of two types.

a) Primary voucher - a written evidence in original in support of a transaction is called primary voucher. Examples include - Invoice for a purchase, Resolution of Board etc.

b) Co-lateral / Secondary voucher - when the original voucher is lost, the subsidiary evidence produced in support of the transactions is called Co-lateral or Secondary voucher.

The features of a valid voucher are --

i) It must be written in the name of the client / business.

ii) The date written on the voucher must agree with the date of entry of the transaction in the books of account.

iii) The amount in the voucher and the amount written in the books of account must be the same.

iv) The description in respect of transaction must be the same in both the voucher and the books of account.

v) The voucher must be properly authorised.

vi) Any correction in the voucher must bear the signature of a responsible officer.

vii) Where the voucher relates to a cash payment exceeding Rs.5000, it must be stamped.

The auditor should refuse to accept the following classes of voucher though properly signed and stamped, if--

i) the name of the party to whom the voucher is addressed is not the same of the client, whose books are audited,

ii) the date of the voucher does not correspond to the date of payment as there may be an attempt to use an old voucher to cover up a fraud,

iii ) the amount of the voucher does not agree with the entry in the Cash Book,

iv ) the voucher has not been passed by a responsible official,

v ) the voucher though addressed to the client is real in respect to goods or services not related to the business,

vi ) the voucher has already been cancelled, because it has already served it's purpose.