It is 1 August 2019 and you have been assigned to a local client, Falon Ltd, a company that specializes in manufacturing and selling all kinds of furniture.

You are now planning the up -coming audit engagement of accounts payables of Fallon Ltd. Fallon Ltd is referred to as your established client, and you where one of the audit team in the previous audit. You have also established that Fallon Ltd is operating a significantly huge accounts payables ledger and also it has been determined that there is a high sample size for the audit of payables. As part of your audit assignments, you have done some reviews on Fallon Ltd’s accounts payables aged analysis and as a result of that, you have managed to identify that the majority of the accounts payables have reached 120 days without being settled. You have been told by the Finance manager of Fallon Ltd that there is a significant matter that arose as a result of the way VAT was calculated on one invoice amounting to $580, 000, leading to many customers querying and thereby defecting their payments.

Required:

Design and explain audit procedures that you would perform in order to support the following assertions in relation to the audit of accounts payable at Fallon Ltd

Answer rating: 100% (QA)

Answer Assertions 1 That all payables are recorded in the accounts payable ledger at the amount due Audit Procedure I would perform the following audi... View the full answer