Question: Using the information provided in the example and the results
Using the information provided in the example and the results of analytical procedures performed in problem 12-32, explain the substantive audit procedures, audit evidence, and related management assertions that you would need for the test of details of the accounts payable balance.
Answer to relevant QuestionsHow does encumbering funds help keep a government entity’s spending within its budget?What should happen when discrepancies exist among supporting documents for a purchase or when the goods received are not what was ordered or arrive damaged?What are important detective controls for cash disbursements?What are common sources of discrepancies between responses on blank accounts payable confirmations and the audit client’s accounts payable subsidiary ledger?What characteristics of the purchasing, receiving, and payment activities in the automotive industry make ICFR very important? What ICFR are important, and what does the auditor do to test them?
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