Unformatted text preview: Due to the volaTle nature of accounts payable things can change immensely in a short amount of Tme. ±herefore waiTng to test unTl the year end oFers the most stable look at of the data. ±his helps limit any errors that may get listed because certain items may not have cleared yet. ±his volaTle nature also makes true value a bit more di²cult to determine. ±he true value should be determined as closely to the balance sheet date as possible. ±his again helps limit any errors because there is less Tme for changes. Audit con³rmaTons help to verify that all liabiliTes have in fact been accounted for. ±his helps negate any material misstatements that may have happened over the course of Tme. Whittington, O. R., & Pany, K. (2014). Principles of auditing & other assurance services (19th ed.). New York, NY: McGraw-Hill....
View Full Document
- Winter '14
- Financial audit, External auditor, balance sheet date