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Hi,
Supplier statement reconciliation
– Select a sample of supplier statements and agree the balance to the purchase ledgerIs supplier statement reconciliation a “re-performance”?
Yes – supplier statement reconciliations is a monthly control procedure that should be carried out by all but the smallest of businesses. The auditor agreeing that these have been performed correctly by reperforming the reconciliation is reperformance.
Can this be a SP for purchases?
Obtain a breakdown of the purchases and confirm that no capital expenditures are included in the purchase day book and in the payables ledger.
Obtain written representations from suppliers with regards to the amount owing and agree the balance to the payables ledger.
I was wondering if the points above make any sense since I have never seen that type of points before.
Sorry, not “written representation from suppliers”
Send CONFIRMATION to suppliers with regards to the amount owing and agree the balance to the payables ledger
1. Is wrong. All purchases on credit should be recorded in the purchases day book and from there to general ledger a/cs. Crazy will always be to payables but Dr can be for any expense (goods or services) or an asset.
2. I don’t have notes to hand but please check I’m sure this should be covered. For suppliers it is enquiry – asking for a balance (preferably sent as a statement to see its makeup). This is then confirmed through agreement/ reconciliation.
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