Chapter 10: SP - Trade Payables Flashcards
1
Q
General Procedures (6)
A
- Agree list of creditors in ledger with the control account and financial statements.
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Circularization
No response>alternative
exceptions>additional - Examine subsequent payments to creditors
- Correctly classified presented. Inquire about RP disclosures
- Review control accounts shortly before and after year end for unsual items
- Review aging report of creditors
2
Q
Completeness (5)
A
- Perform cut-off test on purchases
- Inspect pending GRNs (goods recevied but no invoice) and ensure they are recorded at balance sheet date
- Compare account statement sent by supplier with respective ledger account
- review significant payment made after year end and check if any liability relates to current year
- Review list of creditors from previous year > identify major supplier > check if any ommited or amount declined significantly. Inquire reasons