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In case of payables, there are these two procedures for emsurimg completeness and existence.
1. Obtain suppliers statement and agree to individual list of payables.
2. Perform trade payables circularisation and follow up non replies and reconciling items.
Ain’t they both same and fulfill same obligation. Why therez a need to perform both ?1. you could obtain the statements from the client
2. this would be obtaining the statements directly from the suppliers
You probably wouldn’t need to do 2. if you can get statements from the client and there is no reason to suppose that they have been falsified in any way.
See Chapter 18 of our notes – circularisation of payables is less common that receivables – for receivables you can ask for confirmation of balance (“positive” request) but for payables, as you would be more concerned about unrecorded liabilities, you would more likely just ask for a statement (rather than ask for confirmation of the balance in the payables ledger).
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