Accounts payable is a significant area of concern for auditors. Businesses record the amount of payables (invoices due to vendors) at the end of each period. Accounts payable is a liability, so when invoices are recorded as payable, the liability increases along with related expenses. Businesses can manipulate their net income by intentionally not recording invoices that are legally due to other parties. The directional risk for payables is that they are understated. So a relevant assertion in auditing accounts payable is completeness. This is the reason auditors usually perform a search for unrecorded liabilities.
One of the most important audit areas is accounts payable and expenses. This article tells you how to handle this critical part of your audit.
The Theft Fraudsters can steal by double paying a vendor. In this article, I show you how duplicate payments…