Your firm is the auditor of JebStone Minter Ltd, and you are planning the audit work you will carry out in verifying accounts payable and accruals at the company's year-end of 30 June 2015. You are aware that 30 June is one of the busiest times of year for the company and while a full stocktake is carried out the company does not stop trading at the year-end.

The company operates from a single site and all raw materials for production are received by the goods inward department. When the materials are received, they are checked for quantity and quality against the delivery note and purchase order, and a multicopy receiving report is made out and signed by the store manager. If there are any problems with the raw materials, then a discrepancy note is raised that gives details of any problems (e.g. incorrect quantities or faulty materials).

The purchases department receives the suppliers' invoices, checks them against the purchase order and receiving report, and posts them to the purchases ledger. At the end of each month, payments are made to suppliers. The purchases ledger is maintained on a microcomputer.

Required

Identify the key assertions at risk and describe audit procedures that you would carry out at the year end to satisfy yourself that the payables and accruals balances are fairly stated.