You have been asked by your firm to examine the payment vouchers of a company to establish the level of errors and then decide whether better results can be obtained through statistical techniques.Required:State the steps you would take in order to test the vouchers for the errors

In order to test the vouchers for errors, I would;
i. Cast the figures in the vouchers in order to determine their arithmetical accuracy.
ii. Compare the current year‘s payments against the previous year‘s and investigate any unfavourable variance or difference.
iii. I would trace the payment vouchers to the ledger accounts to ensure no payment was left out in the vouching.
iv. I would inspect the payment voucher for authorization by the responsible official. I would expect authorization to be evidenced by a signature or stamp.
v. I would inspect the documents underlying the payment voucher such as the goods received note.
vi. I would carry out a sequence check on the payment voucher to establish the completeness of the vouchers. Any cancelled or spoilt vouchers should be accounted for.

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