Vouching: Vouching is a fundamental auditing procedure that involves examining and verifying the authenticity and accuracy of transactions by checking the supporting documents. Auditors “vouch” transactions by tracing them from the financial statements back to the original source documents, such as invoices, receipts, contracts, and purchase orders. This process ensures that the transactions are valid, properly authorized, and recorded correctly. Vouching is crucial for detecting errors, misstatements, or fraudulent activities in the financial records of an organization.