Audit procedures
In this lesson, you'll learn how to design and execute effective audit procedures for payables and accruals—a core skill for the Audit and Assurance paper.
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In this lesson
- 0:00 Audit procedures for trade payables
- 0:53 Verifying payables list accuracy and completeness
- 1:50 Testing cut-off and post year-end transactions
- 2:19 Additional procedures for completeness and valuation
- 3:09 Understanding cut-off and goods received notes
- 4:00 Identifying which accounts need testing
- 5:32 Auditing accruals and analytical procedures
- 6:09 Determining recognition based on goods receipt date
About this lesson
You'll explore practical procedures like recasting payables listings, performing analytical comparisons, and agreeing balances to supplier statements, understanding why each procedure addresses specific audit assertions. Through a worked scenario on Desk Drawer Co, you'll see how auditors test for completeness, cut-off, and valuation concerns, and you'll work through exam-style questions that show how to identify which accounts need testing when understatement is the identified risk. The lesson emphasises the critical link between purchases, goods received notes, and payables recognition—ensuring you can confidently apply these procedures in both study and practice.
Duration: 7m
Transcript
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