Substantive Procedure

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.

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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