Please Identify and Explain the deficiencies in the audit work of trade payable.

Your firm is the external auditor of Bangla Limited (BL), a listed company. The engagement partner performed a detailed review of the audit file for the year ended June 30th 2020. He is concerned about the quality of the work performed on the confirmation of trade payables balances. An extract from the working paper summarising the audit work in respect of the confirmation of trade payables balances is shown below: Trade payables Objective of the audit test To test trade payables for completeness. Sample size 50 items. The sample size has been reduced from the firm's standard sample size of 80 as we believe the control environment at NL is strong as we have found no issues in previous years. Source of sample Balances selected from the trade payables ledger list of balances at June 30th 2020. Other information Materiality threshold - Rs. 1 million Trade payables balance - Rs. 180 million Sample selected for direct confirmation - Rs. 40 million. Results of confirmations Number Rs. (m) Balances confirmed directly with suppliers 30 31 For non-replies, alternative procedures were used as follows: Balances confirmed by after date payments made by NL to suppliers 17 8.5 . No further work on balances that individually are not Material 3 0.5 Total 50 40 Findings One error of Rs. 275,000 identified - no further work as below materiality threshold. Conclusion Trade payables are not materially understated. Required: Identify and explain the deficiencies in the audit work of trade payable