Performing Audit Tests of Balances (In-Person and Remotely)—Part 8, Auditing Accounts Payable and Accrued Expenses

Date: 1/31/2025
Time: 12:00 PM - 2:00 PM EST
CPE Credit: 2 hours

Learning “how” to audit accounts payable begins with a focus on the completeness assertion. Understatement of accounts payable results in understatement of related expense or asset accounts. Some small to medium-size entities use accounting software that permits recording accounts payable when vendor invoices are received; account activity is maintained for each vendor. Other smaller entities may simply keep open invoices and receiving reports in tickler files for recording when disbursements are made. In both cases, the auditor’s primary concern is that all accounts payable for vendor invoices and statements have been recorded. The auditor is also concerned that any other liabilities and accrued expenses have been properly calculated and recorded.

Topics Covered

• Basic procedures for auditing accounts payable and accrued expenses

Learning Objectives:

• Understand the affects of assessed levels of risk of material misstatement on accounts payable auditing procedures
• Learn ways to audit accounts payable more efficiently
• Be able to design and prepare the most efficient documentation of accounts payable and accrued expenses auditing procedures