The auditor may perform analytical procedures related to the completeness of purchases and payables. An example would involve a comparison of purchases to the underlying physical business such as a comparison purchases to production levels. In addition, the auditor should be alert for a current ratio that looks too good.
Describe two other procedures an auditor most likely would perform in searching for unrecorded payables.© BrainMass Inc. brainmass.com June 4, 2020, 1:30 am ad1c9bdddf
One procedure is to look at the payments for the month or two following year end. Review any large ones to see if ...
Two potential procedures are given.