Supplier statement reconciliation
A supplier statement reconciliation compares a supplier’s statement with the entity’s purchase ledger to identify timing differences, errors or omitted liabilities. The auditor evaluates the source and completeness of statements and investigates reconciling items relevant to the audit.
Worked example
The auditor compares a supplier statement with the year-end payables ledger and investigates an invoice absent from the ledger.
Common mistake
A supplier statement obtained from the client is not automatically equivalent to an external confirmation received directly by the auditor.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | AA | Supporting | September 2026–June 2027 |