Accounts Payable and Unrecorded Liabilities
期货分析代写 Prepare a substantive audit program for Accounts Payable Balances and Unrecorded Liabilities. The construction of such a program
- Analyze the control procedures (strengths) related to accounts payable processing. For each control procedure, describe a test of controls you could perform to test the operating effectiveness of the control.
- For each weakness you find, list the weakness, a possible error or irregularity that may occur because of the weakness, and a compensating substantive test of transactions or balances to detect the error or irregularity, assuming the necessary records and documents are available to you.
- Prepare a substantive audit program for Accounts Payable Balances and Unrecorded Liabilities. The construction of such a program should begin with the financial statement assertions. Your audit program should address the financial statement assertions, as well as any weaknesses you have uncovered in the internal control structure.
- Discuss possible unrecorded liabilities that can be found in a bank confirmation.
- Discuss the main differences between accounts receivable and accounts payable confirmations.
Additional questions for Groups with more than 4 members:
- Discuss the following:
- Key segregation of duties in the purchasing process.
- Errors or fraud that can occur if such duties are not segregated.