ACCA AA Syllabus D. Audit Evidence - Payables - Accruals - Notes ^{12 / 18}

Although these are often not material - we are checking mainly for completeness

We will use analytical procedures and the auditors knowledge of the business

Substantive Procedures

• Get a listing of accruals

• Check arithmetical accuracy

• Check total agrees to main ledger

• Check payments and invoices after year end for reasonableness

• Compare to last year - review for completeness

Wages accrual

This is often higher than the others

• It consists of unpaid wages, overtime, holiday pay & bonuses

• Compare to payroll records and post year end payments

• Ensure tax is included

• Analytical Procedures: Accrual to total payroll ratio