You are the auditor for KPDZ Corporation. You gathered comparative information for inventory and accounts payable and

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You are the auditor for KPDZ Corporation. You gathered comparative information for inventory and accounts payable and calculated the days purchases in accounts payable.
___________________________________________2014...................2015
Inventory.................................................$34,270...............$57,921
Accounts
payable........................................$ 8,295...............$10,628
Days purchases in accounts payable................44.2 days..............44.6 days
(365 days/payables turnover)
Required:
Prepare a list of possible concerns that you might have about potential misstatements in both accounts.
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Auditing and Assurance Services A Systematic Approach

ISBN: 978-0077732509

10th edition

Authors: William Messier Jr, Steven Glover, Douglas Prawitt

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