Audit procedure that starts with an accounting entry and works back to source documents to test whether the recorded transaction is genuine, accurate, and authorized.
Vouching is an audit procedure in which the reviewer starts with a recorded accounting entry and traces backward to invoices, contracts, receipts, approvals, or other source evidence to confirm that the transaction really occurred and was recorded properly.
Vouching helps auditors and reviewers test occurrence, accuracy, authorization, and validity. It reduces the risk that fabricated, duplicated, misstated, or unsupported entries remain in the books without evidence.
The reviewer selects a transaction from the ledger, journal, or subledger and then inspects the documents supporting it. The goal is to confirm that the amount, date, account classification, and business purpose all make sense. In payables testing, for example, the reviewer might inspect the purchase order, receiving report, vendor invoice, approval record, and posting reference.
| Starting Point | Evidence Reviewed | Main Question |
|---|---|---|
| Expense entry | Invoice, receipt, approval, vendor support | Was the recorded expense real and properly supported? |
| Revenue entry | Sales invoice, contract, shipping proof | Did the sale actually occur and in the right period? |
| Liability entry | Invoice, agreement, receiving record | Was the obligation valid and measured correctly? |
An auditor selects a 2,400 office-supplies expense from the general ledger and tests it this way:
| Step | Evidence | What The Reviewer Confirms |
|---|---|---|
| Start with ledger entry | Supplies expense posting | Amount and posting date selected for testing |
| Inspect invoice | Vendor invoice for 2,400 | Amount and vendor match the ledger |
| Inspect approval | Manager approval or workflow evidence | Purchase was authorized |
| Inspect receiving or usage evidence | Delivery record or internal receipt | Goods or services were actually received |
If the documents support the transaction, the expense entry is vouched.
Vouching is not the same as tracing. Vouching starts in the books and works back to evidence, which mainly tests whether recorded items are real and supported. Tracing starts with the source documents and follows them into the books, which mainly tests completeness.