Common Points: In Writing Vouching / Verification question

Common Points to Be used while Writing Vouching / Verification Question

How to use the points in your answer ?

a)Following are the common points to be used in any Vouching or Verification Question asked.

b) However you need to use everytime the name reference of the item being vouched or verified.

c) These are just common points  , which will help you in increasing the points and fetching good marks , without much efforts.

d) Students must in addition to the points given below also in every Vouching or Verification question , write some points relevant to that particular item

for example: Patents – Verify if provisions of patents act are followed properly ,

                                     Check when does the Patent expires,

                                     Whether patent if expired is renewed on timely basis etc

Verification:

1)      Verify whether the expenditure is of capital or Revenue in nature

2)      Ascertain depreciation if required is duly provided

3)      Check whether the item is disclosed properly as per schedule VI  ,Part I & Part II of the Companies act

4)      Verify that all the General principles , procedure , accounting standard and guidance notes are duly complied with

5)      Check Whether ( the item to be verified ) needs to disclosed under CARO ,2003

6)      Verify whether proper valuation of the item is done at balance sheet date

7)      Examine Relevant records and the validity and accuracy of the item recorded

8)      Apply analytical review procedure , wherever required

Vouching:

1)      Ascertain the nature of particular head of  item

2)      Ensure that all entries are properly recorded in the books of accounts

3)      Verify if  authorized by Board of Directors or Proper authority

4)      Confirm that other applicable provisions are duly complied with

5)      Review the expenditure  as compared to previous years expenditure and deviation if found than reasons for the same

6)      Ascertain the Internal Control System periodically

7)      Check validity of transaction & Observance of accounting principles

8)      Check if item properly disclosed in Financial Statements prepared.