The audit team is preparing for audit of accounts payable at a continuing client, Springs Ltd. Springs
Question:
The audit team is preparing for audit of accounts payable at a continuing client, Springs Ltd. Springs has grown rapidly this year and introduced new products into its business. The new products are purchased from overseas suppliers. Finn is new to the audit team and keen to make an impression. Finn suggests that the team use payable confirmations to gather evidence about the completeness of accounts payable because they provide highly persuasive evidence. Finn has already asked the client for a list of accounts payables from which the sample of suppliers will be selected for the account payable confirmation letters.
Required
Assess Finn’s suggestion and explain its strengths and weaknesses.
Step by Step Answer:
Auditing A Practical Approach
ISBN: 9780730364573
3rd Edition
Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton