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 day...

This is a relatively straightforward analytical procedures problem Here are some o ...

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

Question:

You are the auditor for KPDZ Corporation. You gathered comparative information for inventory and and calculated the days purchases in payable........................................$ 8,295...............$10,628
Days purchases in 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...