AUDITRIBE
PRACTICAL AUDIT GUIDE

Accounts Payable

Ensure supplier liabilities and payments are valid, accurate, complete, authorised and processed in line with agreed terms.

Key Risks

  • Duplicate or fictitious payments
  • Payments without adequate approval
  • Unrecorded liabilities
  • Supplier master manipulation
  • Incorrect taxes or deductions

Documents & Data

  • Accounts payable ageing
  • Supplier master file
  • Invoices and purchase orders
  • Goods received notes
  • Payment vouchers and bank records
  • Vendor statements
  • Credit notes and debit notes

Key Controls

  • Approved supplier onboarding and changes
  • Three-way matching
  • Payment approval limits
  • Duplicate invoice checks
  • Supplier statement reconciliations
  • Segregation between vendor setup and payment

Practical Audit Procedures

  1. Obtain the full invoice and payment population and test completeness.
  2. Test samples from invoice to purchase order, receipt, approval and payment.
  3. Search for duplicate invoice numbers, amounts, bank accounts and near-duplicate payments.
  4. Review vendor master changes and confirm independent approval.
  5. Review long-outstanding debit/credit balances and investigate unusual items.
  6. Reconcile selected supplier statements to the ledger and investigate differences.

Questions to Ask

  • What could prevent this process from achieving its objective?
  • Which controls are considered critical, and who owns them?
  • What evidence shows the controls actually operated during the period?
  • What exceptions, incidents or recurring problems occurred?
  • What has management changed since the last review?

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