Question: An auditor has been assigned to audit the accounts payable
An auditor has been assigned to audit the accounts payable of a high risk audit client. Control risk is assessed as high, management integrity is marginal, and the company is near violation of important loan covenants, particularly one that requires the maintenance of a minimum working-capital ratio. Explain how the auditor should approach the year-end audit of accounts payable, including a discussion of specific audit procedures.
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