1. What are the Sources of payables? ( From what transactions do those obligations arise)
2. What are the primary concerns with the audit of payables? (Existence or Completeness)
3. What are the primary concerns with the audit of receivables? (Existence or Completeness)
4. Confirmation is generally a required audit procedure for receivable. Is confirmation generally a required procedure for the audit of payable? (Yes or No) Explain.
5. List a few examples of substantive tests of payables.
6. How do auditors search for unrecorded accounts payable?
7. Goods purchased were shipped Dec. 31, 2018. Goods and invoice were not received until January 10, 2019. FOB shipping.The company's practice is not to record liability until the receipt of the invoice.Is this an unrecorded liability as of 12/31/18? Was 2018 net income misstated?
8. Goods purchased were shipped Dec. 31, 2018, and received as of 12/31/2018. The invoice was not received until January 10, 2019. FOB shipping.The company's practice is not to record liability until the receipt of the invoice.Is this an unrecorded liability as of 12/31/18? Was 2018 net income misstated?