Vouching is the essence of Audit. Explain the statement.

The definition of vouching discloses that it is a sort of preliminary work which forms an important part of the audit work. Since accounts of the business begin with passing of entries, hence it becomes a basis for further scrutiny to be made at a later stage. Its importance, therefore, can hardly be over emphasized. The purpose of checking entries by reference to appropriate documentary evidence is to ensure that the transaction relating to a particular period have been recorded and there is no voucher left unrecorded in the financial books.

The auditor after satisfying himself with regard to authority, authenticity of transactions can only then say categorically that the books of account are correct and the Balance Sheet and Profit and Loss Account exhibit a true and fair view of the financial affairs of the business.

It is certainly true that vouching is done with care and caution by the auditor, he can proceed well further in his work. Thus, vouching becomes an indispensable preliminary to carry on further scrutiny and to satisfy him that the financial books reveal the true position of the business.

That is why vouching is said to be the back bone of auditing, it is the essence of auditing. In practice, vouching may be a lengthy process in many big organizations. For this the auditor may apply test checking depending upon the system of internal check in existence in the organization.