AUDITS OF ACCOUNTS PAYABLES

Auditor often focus on the exixtence of approved invoices, expence reports, and other supporting documentation to support checks that were cut. The presence of a confirmation or statement from the suppliers is a reasonable proof the existance of the account. It is not uncommon for some of this documentation to be lost or misfiled by the time the audit rolls around. An auditor may decide to expand the sample size in such situations.

Auditors typically prepare an ageing structure of accounts payable for a better understanding of outstading debts over certain periods ( 30,60,90 days, etc). Such structure are helpful in the correct presentation of the balance sheet as of year end.