DESCRIPTION
This module provides an introduction to the financial statement assertions relevant when auditing accounts payable and the audit procedures commonly performed. Through an interactive case study, this module will familiarize participants with data provided by clients, such as the cash disbursement listing, trade AP listing, and invoice packages. During the case study, the participants will select items for testing from the cash disbursement listing and request the invoice packages from their “client” (as role-played by the instructor). The remainder of the case study allows participants to practice performing and documenting the search for unrecorded liabilities.
LEARNING OBJECTIVES
- List risks of material misstatement relevant at the assertion level when auditing accounts payable
- Describe audit procedures commonly performed when auditing accounts payable, including the search for unrecorded liabilities and other cutoff testing procedures
- Use documentation techniques to comply with professional standards to appropriately document the work performed
