Refer to Exhibit which describes assertions and related auditing procedures
Refer to Exhibit, which describes assertions and related auditing procedures for accounts payable. Match the following assertions with their associated auditing procedure: (a) existence or occurrence, (b) completeness, (c) rights and obligations, (d) valuation or allocation, (e) presentation and disclosure.
1. Request vendors' monthly statements or send confirmations to major vendors requesting a statement of open account items.
2. Review the client's financial statement disclosures of accounts payable and expense accounts such as travel and entertainment 3. Use GAS to verify mathematical accuracy of accounts payable, or agree to the general ledger.
4. Examine a sample of cash disbursements made after the end of the year to determine whether the disbursements are for goods and services applicable to the previous year.
5. Perform a cutoff test of purchases and cash disbursements.
6. Perform analytical review of related expense accounts, for example, travel and entertainment or legal expenses.
7. Review long-term purchase commitments, and determine whether a loss needs to be accrued.
8. Agree monthly statements and confirmations from major vendors with the accounts payable list.

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