ch14 outline - Outlines Chapter 14-1 Chapter 14 Accounts...

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Outlines Chapter 14- 1 Chapter 14 Accounts Payable and Other Liabilities Contents: 1. Accounts payable audit procedures 2. Fraudulent billing 3. Other liabilities (not including accrued liabilities) 4. Accrued liabilities 1. Accounts payable audit procedures — general a. Confirmations—often sent, but are not required Why not required? 1. External documents exist (vendors’ invoices, vendors’ statements) 2. Confirmations are better for overstatements When do we usually confirm? 1. Bad internal control 2. Bad financial position 3. When some vendors don't send monthly statements Who do we send them to? 1. Major suppliers, not necessarily major recorded payables. 2. Sample of others 3. Disputed accounts Other Procedures: A primary objective of the procedures below (especially b-e), is to determine whether a purchase should have been recorded as of year end and was not (that is, we want a proper cutoff). They emphasize a “search for unrecorded liabilities” as of year-end. Title passing is the key
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This note was uploaded on 09/08/2010 for the course BUS 129A at San Jose State University .

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ch14 outline - Outlines Chapter 14-1 Chapter 14 Accounts...

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