Audit and assurance

The following scenario relates to questions $11-15.$

You are an audit senior of Wilko & Co and you are currently conducting the audit of Happy Co for the year ended $30$ June $20$X$6.$

Materiality has been set at $$50,000,$ and you are carrying out the detailed substantive testing on the year$-$end payables balance. The audit manager has emphasised that understatement of the trade payables balance is a significant audit risk.

Below is an extract from the list of supplier statements as at $30$ June $206$ held by the company and corresponding payables ledger balances at the same date along with some commentary on the noted differences:

$\backslash$table$[[$Supplier$,$Statement balance,Payables ledger balance$],[$Carnaval Co$,$$$000,$$$000$