You are auditing accounts payable for Young Pty Ltd (Young), a whitegoods wholesaler, for the year ending on June 30th   20X1. All of Young's contracts with suppliers require payment in full by the end of the month following the month in which the purchase was made. The audit program requires that you test for the completeness of accounts payable. Accordingly, your assistant inspects Young's Cash Payments Journal for the month of July 20X1, and provides you with the following record of payments to creditors.

Date Paid                Name of Creditor               Amount Paid

12/07/20X1                 Labrina Pty Ltd           $33,000

16/07/20X1                 North Pty Ltd            $22,000

20/07/20X1                 LeFevre Pty Ltd           $16,000

31/07/20X1                 Archer Pty Ltd            $24,000

 

REQUIRED:

(i) What do you do with this information? 

(ii) What is the name of the test you have undertaken?

(iii) Outline the principle on which you have relied when performing this test.

Answer rating: 100% (QA)

i With this information I would verify whether the payments made during July 20X1 have bee... View the full answer