An integrated payphone (30) and vending machine is described. A housing contains typical vending machine components such as a power supply, money accumulators, a controller, a selection device (2) and vending actuators. Furthermore, the housing also has a payphone (30) with a telephone line. The selection device (2) allows the user to chose a desired mode of operation or to enable a vend mode of operation while the payphone (30) is in use. The integrated payphone (30) and vending machine permits the optimization of an audit system for monitoring both the vending machine and payphone (30) utilizing a telephone line. The apparatus is cost effective because many components, such as the money accumulators and power supply can be shared by both the payphone (30) and vending machine.