Auditor’s OBJECTIVE in audit of Accounts payable and related

liabilities
Specific Audit Objectives
Transaction Objectives
Occurrence.
 Recorded purchase transactions represent goods or services received during the period.
 Recorded cash disbursement transactions represent cash received during the period.
 Recorded purchase returns represent goods returned during the period.
Completeness.
 All purchases, cash disbursements and purchase returns made during the period were recorded.
Accuracy.
 All purchases, cash disbursements, and purchase returns are accurately valued using GAAP and correctly
journalized, summarized and posted.
Cutoff.
 All purchases, cash disbursements, purchase returns have been recorded in the correct accounting period.
Classification.

 All purchases, cash disbursements, and purchase returns have been recorded in the proper accounts.

Balance Objectives
Existence.
 Accounts payable represent amounts owed to vendors at the balance sheet date.
Completeness.
 Accounts payable includes all payments owing to vendors at the balance sheet date.
Rights and Obligations.

 Accounts payable are obligations of the entity at the balance sheet date.
Valuation and Allocation.
 Accounts payable are correctly stated at the amounts owed.

Disclosure Objectives
Occurrence and Rights and Obligations.
 Disclosed purchase cycle events and transactions have occurred and pertain to the entity.
Completeness.
 All purchase cycle disclosures that should have been included in the financial statements have been
included.
Classification and Understandability.
 Purchase cycle information is appropriately presented and described and information in disclosures is
clearly expressed.
Accuracy and Valuation.
 Purchase cycle information is disclosed accurately and at appropriate amounts.