Accounts Payable is generally one of the larger, and most volatile, liability accounts to audit. However, the auditor can use the assertion approach developed in this chapter to develop an overall audit program for accounts payable.
Assume that you are auditing the Accounts Payable account for Appleton Electronics, a wholesaler of hardware equipment. You can assume that the company has good internal controls and is not designated as a high risk audit client. You are the continuing auditor.
During the previous audit, adjustments were made regarding Accounts Payable, but none of them were considered material.

Required
a. Identify the financial statement assertions that apply to Accounts Payable.
b. For each assertion identified, list two or three types of audit evidence that would address the assertion and the procedures used to gather the audit evidence. Organize your answer as follows:
Financial Statement Assertion Audit Evidence and Procedures
c. How would the evidence-gathering procedures be affected if you had assessed the client as a high risk client because (1) there are questions of management integrity, (2) the company is in a perilous financial situation, and (3) the company has inadequate internal controls? Be specific in your answer, explaining what additional evidence, or alternative types of evidence, you would gather.