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You are in the process of auditing Big Three, LLC as of and for the year ended December 31, 2019 (it is now February 2020).

You are in the process of auditing Big Three, LLC as of and for the year ended December 31, 2019 (it is now February 2020). Big Three shows $3,240,725 as the balance of accounts payable in the general ledger ("G/L") as of 12/31/19. You foot the 12/31/2019 accounts payable ledger by vendor getting a total of $3,603,529. 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 ("C/D") journal for the month subsequent to year-end and to set a threshold for material misstatements of $199,200 for accounts payable. Upon making selections for those transactions from the C/D journal, you note that $780,720 in subsequent payments related to vendor payables where services were performed during 2019 and were recorded as payables as of December 31, 2019. You find that there are $526,200 in subsequent payments that relate to vendor payables for services that occurred in 2020 and were recorded in 2020. You also note $175,800 in payments to vendors for goods and services related to 2019 and recorded in 2020. What audit objectives should you consider relevant to audit Big Three's accounts payable balance? What would be the audit response to the results of the procedures performed?

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