The following is a copy of the auditor’s working paper for auditing accounts payable for the client New Millennium Ecoproducts. 

Required 

(a) Explain the nature of the test being documented in the working paper. 

(b) Compare the information for the current year with the details for the prior year. Do you agree with the auditor’s conclusion? Why?

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New Millennium Ecoproducts Dec. 31, 2016 $ 000 CLIENT: EY Period-end: N- LEADS Currency/unit: Reference N- Leads Step 1: Enter general information. CLIENT Period-end: New Millennium Ecoproducts 12/31/16 $ 000 Currency/unit Step 2: Lead schedules. 12/31/2016 12/31/2015 Prior Year 12/31/2016 Pre-adjusted In % Account no TM/Ref Account Name Adjustments Year Interim Variance Trade payables 20100 TB PY -1,500 23% NO1 -8,000 -8,000 -6,500 21100 Other payables тв PY 13% NO1 -1,800 -1,800 -1,600 -200 F-TOTAL TOTAL 21% -9,800 -1,700 -9,800 -8,100 Step 3: Account details, ratios, and KPIS 12/31/2016 12/31/2015 30 days 360 Days x Average A/P 31 days Average Payment Period Annual Purchases of Goods and Services Expectations about account balances, ratios, and KPIS: v Due to the nature of the client's business and the stability of the primary markets in which it operates, we do not expect the accounts payable balance or creditors days to vary year on year. Comments: v Account details are consistent with previous period and in line with expectations.