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How to do bank vouching effectively

P V K (Asst. Manager (Finance & Accounts)) (202 Points)

10 January 2009

How to do bank vouching effectively can any one give sugessions and how to detect frauds in bank related transactions waithing for ur replys vinod....

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4 Replies

CA. Rajeev Aggarwal (Chartered Accountant) (3419 Points)
Replied 10 January 2009

There should be minimum cash withdrawls from bank

Ruchit G. Sheth (CA & CS Final) (37 Points)
Replied 10 January 2009

You need to check the opening & closing Balances. Check the bank reconciliation. Check the date of contra entries with that in the bank statements. These are some of the basic things which need to be taken care. All the best

Ajay (a) (45 Points)
Replied 27 January 2009

Bank Vouching

Supporting documents are important
check authorisation as per delegation of authority
chek the time of receipt of bank receipts and time of banking it...whether there is any time delay....(this is for internal audit...and may be skipped for statutory audit..)
examine brs...reconciliation items...r ther any items more than 6 months old....such old items have to be reversed....
ensure that each bank payment has a particular reference...for example...invoice number against which bank payment has been made....if lumpsum amount is made...then ignore this step....
Download some files on audit programs....in the area of bank vouching.....

sachin (student) (26 Points)
Replied 30 March 2016

Obtain and document your understanding of the controls and accounting system through discussion with client. This may include to gain an understanding of the following point:

Who authorize the payment,
Who prepares cheques,
Who prepares Vouchers,
Who signs cheque.

After considering above, you should check the Accouting controls

Entries are made under appropriate head.
Expense or income should relate to period of audit.
Proper supporting should be attached with voucher like in case of payment of statutory dues proper challans and in case of party payments receipt should be attached.
Proper narration should be mentioned in Bank Book.
Expense should be incurred for business purpose.
Proper bifurcation between revenue and capital expenditure
Bill should be in the Name of the company.
Ensure that there are no duplication of entries.

and then Verification of Bank Reconciliation statement and pay special attention to the statements which are outstanding from unduly long period. Ascertain the reason for such outstanding items for the management , Examine that wether any such items require and adjustments/wirte off.

These are the few things you should take care of , hope it will be beneficial.