Which of the following is required while vouching purchases? (i) Examine sales book (ii) Examine Purchase book (iii) Examine purchase invoices (iv) Examine the numerical sequence of source documents generated within the organization

Which of the following is required while vouching purchases? (i) Examine sales book (ii) Examine Purchase book (iii) Examine purchase invoices (iv) Examine the numerical sequence of source documents generated within the organization Correct Answer (ii), (iii) and (iv)

The correct answer is Option 1

Key Points

• Vouching is a procedure followed in the process of the audit to authorize the credibility of the entries entered in the books of accounts. ​

Important Points

• Purchase book is a type of special-purpose subsidiary book which is used for recording only credit purchases of goods. It is required to be examined
• A purchase invoice is a document that is issued by the purchaser of goods and services, confirming that the order is indeed valid and has been fulfilled by the seller. It is required to be examined
• The numerical sequence of source documents generated within the organization is required to be examined.
• A Sales book is a record of all credit sales made by a business. It is not required to be examined.