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Hello Sir,
Sometimes I come across payable circularization is there any payable circularization that we must be aware of.
other than responding to the suppliers auditor circularization.
Thanks,
I’m sorry but I don’t know what you mean. Please provide context. Where are you seeing this and what is it that you don’t understand?
Thanks Sir,
I mean do we have at any time make a type of confirmation of the balance from the supplier himself.
Thanks
It’s less likely that auditors will request direct confirmation from suppliers rather than customers but not impossible – e.g. see last bullet on page 91 of the notes:
? Carry out or reperform reconciliations of individual payables balances to suppliers’ statements.
If the client does not receive regular monthly statements from suppliers, the auditor may use
external confirmation procedures to request direct evidence of amounts owing at the reporting
date.
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