Assuming the client corrects the G/L balance and provides a corrected report, you then proceed with test work. Your audit program for this area requires you to obtain the cash disbursements journal for the period subsequent to year-end through the last day of field work and to set a threshold for material misstatements of $296,700 for accounts payable. Upon making selections for those transactions from the C/D journal, you note that $1,890,304 in subsequent payments related to vendor payables where services were performed during 2015 and were recorded as payables as of December 31, 2015. You find that there are $490,500 in subsequent payments that relate to vendor payables for services that occurred in 2016 and were recorded in 2016. You also note $285,060 in payments to vendors for goods and services related to 2015 and recorded in 2016.

What audit objectives should you consider relevant to audit Tim Bucktus accounts payable balance?

What would be the audit response to the results of the procedures performed?

Explain the basis for your responses.