Difference between Routing Checking and Vouching, Auditing Important Topics

Difference between Routing Checking and Vouching
Auditing & Assurance

Difference between

In this article, we will differentiate Routing Checking and Vouching. Difference between Routing Checking and Vouching is a very important topic which is asked very frequently in all examinations of commerce stream students.

Routine checking

Routine checking is a checking of books of original entry and ledgers as a matter of routine work to determine the arithmetical accuracy and to detect errors and frauds and ensures the reliability of final accounts. It includes checking of casting of ledger accounts, posting to ledger accounts, preparation of trial balance and final accounts. 

Vouching

The act of examining vouchers is referred to as vouching.  It is the practice followed in an audit, with the objective of establishing the authenticity of the transaction recorded in the primary books of account.  It essentially consists of verifying a transaction recorded in the books of account with the relevant documentary evidence and the authority on the basis of which the entry has been made; also confirming that the amount mentioned in the voucher has been posted to an appropriate account which would disclose the nature of transaction on its inclusion in the final statements of account.  After examination, each voucher is marked in a manner to ensure that it may not be presented again in support of another entry.

Difference between Routing Checking and Vouching are given below

Basis

Routine Checking

Vouching

Meaning

It means checking of common records and books maintained by the business organisation.

It means an act of establishing accuracy and authenticity of entries in the account books.

Scope

Its scope is limited up to the books of accounts.

The auditor has to go beyond the books of account to trace the source of entries in books of accounts.

Period

Routine checking is a financial act that is done on a monthly basis to ensure that the numbers in accounting books match the information held by financial institutions.

Vouching is a similar process but only occurs when audit is done at the end of the year.

Process

Routine checking is a total process of accounting control which includes examination of totals, balance, verification of entries in ledgers etc.

It is mainly concerned with the arithmetical accuracy of posting, casting and balance.

Staff

Routine checking of books of accounts are done by the staff appointed by the organisation.

Vouching is mainly done by auditing staff.

Superior

Routine checking does not include vouching.

Vouching is a broader term as it includes routine checking.

0/Post a Comment/Comments

Kindly give your valuable feedback to improve this website.

{ads}