As part of the June 30, 20X2 audit of accounts payable of their client, an audit
ID: 2343115 • Letter: A
Question
As part of the June 30, 20X2 audit of accounts payable of their client, an auditor sent 22 confirmations of accounts payable to vendors in the form of requests for statements. Four of the statements were not returned by the vendors, and five vendors reported balances different from the amounts recorded in the client's accounts payable master file. The auditor made duplicate copies of the five vendors' statements to maintain control of the independent information and turned the originals over to the client's accounts payable clerk to reconcile the differences. Two days later, the clerk returned the five statements to the auditor with the information on the audit schedule attached. REQUIRED: (1) (2) (3) Is it acceptable for the auditor to have the client perform the reconciliations on the five vendors' statements? Provide an explanation for your answer. Describe the additional tests that should be performed for each of the five statements that included differences. What audit procedures should be performed for the confirmation requests that were not responded to?Explanation / Answer
Statement 2: What invoices is not received by company should be taken by company also we need to check whether duplicate entries has been marked or not. Also take payment details from client.
Statement 3: Should inform client that difference is there and do follow up.
Statement 4: Whatever memo or bill issued by client, a register should maintain by clerk. Also whatever payment has been done, ask client to mentioned which payment has been made against which invoice.
Statement 5: No amount should be written off until proper study should be done. Because here same- payment details and reference of invoice that against which invoice what payment is made.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.