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Dear professor
Kindly advise if the below substantive procedure for payables is correct:
Obtain a payable listing and identify any balances that are long outstanding. Enquire with management if any amounts are disputed and obtain supporting documentation such as correspondence with supplier for any disputed amounts.
Would the above test for accuracy and valuation?
For a sample of invoices in the purchases ledger trace amounts to supplier statements.
Would the above test for valuation / existence and completeness?
Thanks in advance for you advice
regards
Johann
Accuracy is not one of the assertions listed fro account balances (no idea why). However, the first test does provide evidence for valuation, existence and obligations.
The second test helps all of valuation/existence/completeness (provided the statement covers the year-end period).
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