Page 70 - eBook Audit Of Financial Statement Components

– Select a sample of post year-end payments from the cash book;
if they relate to the current year, follow through to the purchase
ledger or accruals listing to ensure they are recorded in the
correct period.

– Obtain supplier statements and reconcile these to the purchase
ledger balances, and investigate any reconciling items.

– Select a sample of payable balances and perform a trade
payables’ circularisation, follow up any non-replies and any
reconciling items between the balance confirmed and the trade

payables’ balance.

– Review after date invoices and credit notes to ensure no further
items need to be accrued.

– Enquire of management their process for identifying goods
received but not invoiced or logged in the purchase ledger and

ensure that it is reasonable to ensure completeness of payables.