Audit Program #7 - end. 6. Perform search for other...

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Apple Blossom Cologne Company Audit Program for Accounts Payable Balances and Unrecorded Liabilities AP - 7 W/P Ref Initials Existence/Occurrence 1. Obtain or prepare a schedule of accounts payable at year-end. 2. Examine invoices to support each voucher determining that each is applicable to the current year. 3. Trace each voucher to subsequent payment to determine that each was paid after year- end. Completeness 4. Confirm accounts payable. Review confirmation replies and vendor statements. Investigate unusual amounts and past due balances. 5. Perform a search for unrecorded accounts payable (W-6; W-7; W-10): (a) Review vouchers (accounting for all serial numbers) from audit date to several days after year-end to ascertain that none of subsequent month's accounts payable were applicable to the current year. (b) Review unmatched vendors' invoices, unmatched receiving reports and open purchase orders for several days after year-end. (c) Review the cash disbursements journal from audit date to several days after year-
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Unformatted text preview: end. 6. Perform search for other unrecorded liabilities: (a) Review analyses of operating accounts such as interest expense and legal fees looking for possible unrecorded note obligations, litigation contingencies, etc. (b) Review minutes from meetings of Board of Directors for debt authorization or other liabilities. (c) Review bank confirmations for possible note liabilities. (d) Obtain written representation from client's management regarding liabilities. (e) Obtain letter from client's attorney concerning pending litigation, if any. Valuation or Allocation 6. Recalculate footings of schedule obtained in step 1 and trace total to trial balance. Rights and Obligations; Presentation and Disclosure 7. Investigate any accounts with officers, affiliates, or subsidiaries for evidence of related party transactions. 8. Consider reclassifying any debit balances. 9. Review vouchers for proper account classification (W-5)....
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This note was uploaded on 05/06/2009 for the course ACCT ACCT2 taught by Professor Asifbashir during the Spring '08 term at Aarhus Universitet.

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