Examine the acquisitions and cash disbursements journals for the last few days of the current period and first few days of the succeeding period, looking for large or unusual transactions.

The following auditing procedures were performed in the audit of accounts payable:
1. Obtain a list of accounts payable. Re-add and compare with the general ledger.
2. Trace from the general ledger trial balance and supporting documentation to deter-
mine whether accounts payable, related parties, and other related assets and liabilities
are properly included in the financial statements.
3. Calculate the ratio of purchases to accounts payable and compare to the same ratio
from the prior year.
4. For liabilities that are payable in a foreign currency, determine the exchange rate and
check calculations.
5. Discuss with the accounts payable supervisor whether any amounts included on the
accounts payable list are due to related parties, debit balances, or notes payable.
6. Obtain vendors’ statements from the controller and reconcile them to the listing of
accounts payable.
7. Obtain vendors’ statements directly from vendors and reconcile them to the listing of accounts payable.
Required
644Part 4 / APPLICATION OF THE AUDIT PROCESS TO OTHER CYCLES
8. Examine supporting documents for cash disbursements several days before and after year end.
9. Examine the acquisitions and cash disbursements journals for the last few days of
the current period and first few days of the succeeding period, looking for large or
unusual transactions.
a. For each procedure, identify the type of audit evidence used.
b. For each procedure, identify which balance-related audit objective(s) was/were
satisfied.
c. Evaluate the need to have certain objectives satisfied by more than one audit
procedure.

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