Question

What is the purpose of vouching recorded sales invoices to supporting shipping documents?

1) To ensure that the sales invoices are accurately recorded
2) To verify the authenticity of the sales invoices
3) To reconcile the sales invoices with the shipping documents
4) To identify any discrepancies between the sales invoices and the shipping documents

Answer 1

Vouching recorded sales invoices to supporting shipping documents serves the purpose of ensuring accuracy, verifying authenticity, and identifying discrepancies.

Step-by-step explanation:

Vouching recorded sales invoices to supporting shipping documents serves multiple purposes:

1. To ensure that the sales invoices are accurately recorded: By comparing the details on the sales invoices with the shipping documents, auditors can verify that the information has been accurately recorded. This helps prevent errors or fraudulent activities.
2. To verify the authenticity of the sales invoices: Vouching ensures that the sales transactions actually occurred and that the invoices are legitimate. This helps detect any fictitious sales or forged documents.
3. To identify any discrepancies between the sales invoices and the shipping documents: By comparing the sales invoices and shipping documents, any discrepancies or inconsistencies can be identified. This helps in identifying errors, such as incorrect quantities, pricing, or missing shipments.