ChapterAuditingAccountsPayableandRelatedPurchasingCycleAccounts.docVIP

Browse Location: United States\PwC Material\Montgomerys Auditing, Twelfth Edition\Part 3: Auditing Specific Accounts窗体顶部  HTMLCONTROL Forms.HTML:Hidden.1  HTMLCONTROL Forms.HTML:Hidden.1  HTMLCONTROL Forms.HTML:Hidden.1  HTMLCONTROL Forms.HTML:Hidden.1  HTMLCONTROL Forms.HTML:Hidden.1  HTMLCONTROL Forms.HTML:Hidden.1  HTMLCONTROL Forms.HTML:Hidden.1  窗体底部 23 Auditing Accounts Payable and Related Purchasing Cycle Accounts 23.1 Audit Objectives??? 23.2 Identifying Inherent Risks??? 23.3 Analytical Procedures??? 23.4 Substantive Tests of Details??? (a) Control Risk Assessment and the Nature, Timing, and Extent of Substantive Tests,??? (i) Early Substantive Testing,??? (b) Cutoff Tests of Purchases,???(c) Accounts Payable,???(d) Salaries, Wages, and Payroll Taxes,???(e) Costs and Expenses,???(f) Searching for Unrecorded Liabilities,??? This chapter discusses substantive tests that the auditor may use to achieve the audit objectives related to purchasing cycle accounts, principally accounts payable and related costs and expenses. The audit strategy that determines the nature, timing, and extent of substantive tests for each account balance and class of transactions in the purchasing cycle is based primarily on the auditors identification of inherent risks and assessment of materiality and control risk relating to specific audit objectives, and on efficiency considerations. 23.1 Audit Objectives Specific audit objectives applicable to accounts in the purchasing cycle are described in Figure 23.1. 23.2 Identifying Inherent Risks As discussed in Chapter 8, the auditor obtains or updates information about various aspects of the entity and its business in order to identify inherent risks. Liabilities and related expenses are more likely to be understated or omitted from the accounts than overstated, because the account balances usually consist of items that have been scrutinized and acknowledged before being recorded and because atte