An auditor has been assigned to audit the accounts payable of a high risk audit client. Control

Question:

An auditor has been assigned to audit the of a high risk audit client. Control risk is assessed as high, management integrity is marginal, and the company is near violation of important loan covenants, particularly one that requires the maintenance of a minimum working-capital ratio. Explain how the auditor should approach the year-end audit of including a discussion of specific audit procedures.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...