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Of Liabilities: Substantive Tests
Of Liabilities: Substantive Tests
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SUBSTANTIVE TESTS
OF LIABILITIES
Learning Objectives
After studying this chapter, you should be able to:
Describe the auditors' objectives for the substantive audit of liabilities.
Describe the nature of the audit procedures to accomplish the auditors' objectives for the
audit of liabilities.
Understand and prepare audit working papers to document audit procedures for
liabilities.
Audit Procedures
Existence of Occurrence
A
To determine payables an of the statement of financial position dato
1. Orain om te sienta Isting of
accounts and roles payable as olyesend and reconcile to the
general ledger 2 Vouch recorded to
veodor statements 3. Confirm recorded lable
directly wth suppliers and croton Investigate oferences in abitis reported In be
confirmations with the
recorded book amounta 4 Examine bank contrations for
L
Completeness
B. To determine all transactions
relating to payables have been propery recorded
5. Perform purchases
examinan 6. Test for unrecorded liabilities 7. Patform aracal procedures & In addition to audit
procedure
no. 3.review documentation
client's fios 9 Eamine subsequent paymes
to cred
AL Rights and
Obligation
C. To determine the payables