Page 85 - Auditinf Electronic System
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6- Posting and summarization: all purchases on account transactions recorded A/P
master file
Third: Design test of Details for accounting Accounts payable,
Property plant and equipment
1-For A/P
We will use the same balance-related audit objectives to be applied to verifying
accounts receivable, as they also apply to liabilities, with three minor modifications:
The objectives of auditing the AP balance are:
1. Existence: Recorded accounts Payable exist.
o Confirmation of accounts payable
o Tracing from accounts payable list to vendors invoice (backward)
2. Completeness: all Existing accounts payable are included.
o Trace the receiving documents to the journal entries and subsidiary
ledger. (Forward tracing)
3. Accuracy: Accounts payables are accurate
o Confirmation of accounts payable balances selected from trial balance
is the most common test of detail for accuracy.
o Examination of A/P paid before year end and that due after year
end by verifying with receiving report and vendors invoice
4. Classification: Accounts payable are correctly classified
o Auditor must make sure the client correctly classified AP as Current
or long term
o Review master file for interest bearing liabilities
5. Cutoff: Cutoff for accounts Payable is correct
o Cutoff misstatements occur when current period transactions are recorded
in the subsequent periods and vice versa
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جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية
