13.26 Accounts payable

payments are made to suppliers. The purchases ledger is maintained on a microcomputer. The main sundry creditors and accruals at the year-end include: . wages accruals . payroll tax . time-dependent accruals, such as loan interest, telephone, heating and lighting, and other expenses that are paid in arrears. Most employees' wages are paid weekly in arrears. Required (a) Describe how you would ensure that purchases cut-off has been correctly performed at the year-end. (b) Describe how you would ensure that sundry creditors and accruals have been correctly stated at the year-end. (Adapted from: ACCA Audit Framework, Paper 6, December 1994)