Difference between Vouching and Verification 2022

Difference between Vouching and Verification | Distinguish between Vouching and Verification

According to R. B. Bose, "By vouching is meant the verification of the authority and authenticity of transactions as recorded in the books of account".

According to De Paula, “Vouching means the inspection of receipts with the transactions of a business together with documentary and other evidence of sufficient validity to satisfy an auditor that such transactions are in order, have been properly authorized, and are correctly recorded in the books.”


  1. All transactions have been recorded in the books of accounts and nothing has been left.
  2. All entries recorded in the books of accounts are supported by documentary evidence that is available in the business.
  3. No transaction which is not connected with the business has been recorded.
  4. All transactions are properly authenticated by a responsible person.


According to Arthur Holmes “Verification is the proof of the accuracy of extension, footings, posting, existence, and ownership of assets.” 

According to J.R. Batliboi “The duty of an auditor in verifying the assets is two-fold. He must satisfy himself that they really existed at the date of the balance sheet and were free from any charge and that they have been properly valued. In verifying the liabilities he has to see that all liabilities have been inserted at their proper figures and that no liability has been omitted.” 



1.     Meaning


Any documentary evidence supporting the entries in the books of account is called as a voucher’’ and the act of examining vouchers is referred to as vouching.

Verification is the process of the inspection of physical & documentary evidence of assets & liabilities to confirm their existence, ownership, proper recording & disclosure.

2.      Items to be checked


Vouching for deals with all transactions in which there is an inflow or outflow of money i.e. expenses, income, sale of assets, receipts from debtors, etc.    

Verification is done only for assets and liabilities on the date ok of the balance sheet.

3.      Objectives


Vouching is the practice followed in an audit with the objective of establishing the authenticity of the transaction.

The objective of verification is to confirm the existence, ownership, proper recording & disclosure of assets & liabilities.

4.      Timing


Vouching is done for all the transactions in the year of audit.

Verification is done at the year.

5.      Audit techniques


It involves checking vouchers and supporting documents with the entries in the books.

It involves physical inspection, ledger scrutiny, an inspection of documents, and confirmations from third parties.

6.      Valuation


Vouching is not concerned with valuation.

Valuation is an integral part of verification.

7.      Who Undertakes?


Vouching is usually undertaken by audit personnel.

Verification is usually done by an auditor.


  • Completeness, which examines whether the account balance in the financial statements represents all of the underlying assets, liabilities, income, or expense, e.g. are all the fixed assets owned by the client recorded in the financial statements? 
  • Existence, which examines whether the account balance represents real assets or liabilities and whether any items have been duplicated, e.g. does the account balance represent fixed assets that physically exist?
  • Accuracy, which refers to whether the item has been correctly recorded concerning the party, price, date, description, and quantity, e.g. looking at the underlying entries for the account, has the clerk pressed the correct buttons on the calculator or the correct keys on the keyboard, or has the depreciation charged been correctly calculated?
  • Valuation, which examines whether the account balance is valued at the appropriate amount e.g. has the correct depreciation rate been used, is that rate appropriate, and is the fixed asset worth the amount at which it is recorded.
  • Ownership, which relates to a question of the title – whether the asset is the property of the company e.g. is the fixed assets owned by the company or is there evidence that a third party such as a leasing company has an interest or has the company bought assets which are subject to reservation of title‟ clauses?
  • Presentation, which relates to the manner of presentation of an account balance in the financial statements, e.g. whether creditors have been correctly split between short and long-term creditors.

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