Auditing - Vouching

1) Vouching means an examination by the auditor of supporting documents to authenticate the transactions entered in the books of accounts.

2) Importance as well as Objects of Vouching:

1. Detection of errors and frauds
2. Reduce liability of auditors
3. Moral check on employees
4. Back bone of auditing 
5. Compliance with law
6. Capital and revenue expenditure
7. Genuineness of transactions
8. Nature of transactions
9. Accounting period
10. Accounting
11. Easy conduct of audit

3) Important points to be considered while Vouching :

1. All the vouchers are serially numbered and filed in order of the entries in the accounts.
2. Attention should be paid to the dates which must corresponds to the audit period.
3. The auditor should see whether the voucher is in the name of client.
4. He should see whether the amount written in figures and words is correct.
5. He should ensure whether the account head is properly written or not.
6. He should also see whether the voucher is signed by the recipient of the amount.
7. He should ensure whether the voucher is properly authenticated.
8. Auditor also see whether the expenditure shown is reasonable or not.
9. He should see whether the expenditure is for the cause of the business.
10. In case of expenditure  exceeding Rs. 5,000/= auditor should ensure whether the revenue stamp is affixed on the voucher or not.
11. Auditor should see whether the voucher is properly accounted in the books or not.

Factory Act - Working Hours and Penalties

       

• Exemption of Occupier or Manager from liability in certain cases : 
• Within 3 clear days will give in writing of his intention of producing other actual offender
• The Court shall adjourn the case not more than 3 months for such production of actual offender.
• Continuation of the offence within the period or extended period :
• 6 Months jail or Rs. 100/= for each day or both
• Onus as to age: burden shall be on the accused
• Limitation of prosecution : 
• Within 3 months of the date on which the alleged commission of the offence came to the knowledge of an inspector.
• Within 6 months of the date on which the offence is alleged to have been committed in case of disobeying a written order made by an inspector.

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• Appeal - can be made within 30 days of the service of the order.
• Obligation of workers - If any workers contravenes of any of the provisions of this section (causing danger to health, safety and welfare of workers) , he shall be punishable with jail of 3 months or fine up to Rs. 100/=  (in lumbsum) or both.
• Publication of rules : specified date should not be less than 45 days from the date of publication.
• Restriction on disclosure of information : If any inspector contravenes the order, he shall be punishable to jail of 6 months or fine up to Rs. 1,000/= or both.