An accounts payable audit is an independent assessment of financial data from an organization’s accounts payable records
It examines how AP transactions are being recorded and if it represents an accurate view of your business operations
In many audits, the main focus is your accounts payable department
Example: tests of completeness in accounts payable audit include: Obtain accounts payable listing the client and perform casting and cross-casting to the general ledger to ensure their balances are matched
Select a sample of suppliers’ statements and reconcile them to the accounting records
In the accounts payable audit, the completeness assertion is the most relevant assertion as the understatement of accounts payable is our major concern
This may be due to an intentional act of account manipulation or fraud tends to make accounts payable understated rather than overstated
Deposit account type in the US
A payable-through account (PTA) is a demand deposit account through which banking agencies located in the United States extend cheque writing privileges to the customers of other institutions
