Confirmations [WLOs: 1, 2, 3, 4] [CLOs: 2, 3]
Prior to beginning work on this discussion forum, read Chapters 14 and 15 in the course textbook.
The auditors may decide to confirm accounts payable on an audit engagement. Address the following in your discussion post:
- Describe the audit circumstances in which the auditors are likely to decide to confirm accounts payable.
- Describe the types of accounts payable the auditors are likely to select for confirmation.
- Describe why auditors are concerned with the completeness of accounts payable.
- Describe three ways in which the auditors establish the completeness of accounts payable.
In the audit of interest-bearing debt, auditors identify audit objectives and then determine appropriate audit procedures. Address the following in your discussion post, as well:
- List the audit objectives for substantive tests of interest-bearing debt.
- List seven substantive tests for interest-bearing debt to help the auditors meet the audit objectives.