Question 1b
Marking Guide
Audit procedures – payables 8 marks. 1 for procedure and 1 for the reason. Limit to 0.5 mark in each category where stated briefly without full detail.
| audit procedure | reason for procedure |
| obtain and cast list of payables | ensure that the list id accurate |
| total of payables to the general ledger and financial statements | confirm that the total has been accurately recorded |
| analytical procedures | indicate problems with the accuracy and completeness of payables |
| agree payables to supplier statements | confirm balance due from westra |
| supplier statement reconciliation | liabilities exist and belong to westra |
| reconcile invoices | confirms completeness and cut-off assertions |
| reconcile payments | payment to correct supplier |
| review ledger old unpaid invoices | credits os or going concern indicator |
| after date credit notes | payables not overstated |
| fs categorisation payables | classification objective |
| maximum 8 marks |