Substansive procedure

Substansive procedure:

trade payable and accruals

Relevant statement : supplier statement, payable balance, payable ledger listing, purchase ledger control account

Assertion of Trade payable: 1、completeness 2、cut-off understatement Completeness:

1、analytical procedure

Calculate this year’s trade payable days , compare with last year’s, investigate any significant difference

Compare total trade payables and list of accruals against prior year

2、test of control

Dicuss with mgt… select a sample…(purchase invoices received …journal entry) if find error, consider the materiality of the error

Obtain supplier statements------purchase ledger/trade payable list Trade payable list-------purchase ledger control account Confirmation Cut-off

Review after date payments-----purchase ledger/accrual list ensure in correct period Select a sample of GRN before/after y/e---------period’s payables balance 如果要退货，发货方还要出具credit notes-------purchase ledger

Wages

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