Routine Checking and Vouching

Routine Checking

The term ‘routine checking’ means

(a) The checking of casts, sub-casts, carry forwards, extensions and other calculations in the books of original entry;

(b) The checking of postings into ledgers, and

(c) The checking of ledger accounts, as regards their casts, balancing the carrying forward of balances and the transfer of balances and the transfer of balances to the Trial Balance.

For this purpose, Auditors usually employ ticks of different kinds. Very often coloured pencils are used to distinguish one type of ticks from other.

Objectives of Routine Checking

1. Verification of the arithmetical accuracy of the original books;
2. Ascertainment of postings from books of original entry to the correct accounts in the ledgers;
3. Ensuring, by special ticks, that no figures are altered after they have been checked.

Contrary to this the objects of vouching are much wider in their scope. In addition to the objects of routine checking discussed above, auditor undertakes the work of vouching with the object of going behind the books and to completely satisfy himself that the transactions recorded in the books are (i) properly authorised and (ii) correctly entered into. His attempt would be in the direction of finding out facts behind the figures. Careful and intelligent vouching would help an auditor to a very great extent in detecting frauds. The extent of vouching to be performed by an auditor would depend upon the systems of book-keeping and internal check in operation in the business.

Advantages of Routine Checking

Following benefits can be obtained from the routine checking:

1. All the original entries will be checked; so all the errors and frauds can be detected easily.
2. All the entries and posting will be tested.
3. Routine checking helps to conduct final audit because all the balancing and totals have already been checked.
4. Separate and specific staffs are not needed because it is a regular process.

Disadvantages of Routine Checking

Followings are the limitations of routine checking:

1. Routine checking is a mechanical test, so the staff who performs this work does not have inspiration. So, there are chances of leaving errors and frauds.
2. Routine checking can only detect small errors and frauds but not the planned frauds.
3. Routine checking is not needed where self balancing system is applied.
4. Routine checking cannot detect principle and compensating errors.

The following points, show the relationship/difference between routine checking and vouching:

1. The auditor verifies the arithmetical accuracy of the entries through routine checking. In vouching entries are checked with the help of related documentary evidence.
2. Vouching also includes examination of documentary evidence in support of recorded transactions besides routine checking. Thus, routine checking is a part of vouching.
3. The work of routine checking is generally done by junior audit clerks, whereas vouching is done by senior audit clerks.
4. Vouching traces the sources of information beyond the books of accounts whereas routine checking is limited to recorded entries.

The auditor verifies the arithmetical accuracy of the entries through routine checking. In vouching entries are checked with the help of related documentary evidence.

Vouching also includes examination of documentary evidence in support of recorded transactions besides routine checking. Thus, routine checking is a part of vouching.

The work of routine checking is generally done by junior audit clerks, whereas vouching is done by senior audit clerks.

Vouching traces the sources of information beyond the books of accounts whereas routine checking is limited to recorded entries.