Auditing Accounts Payable Part 2 - Tests of controls and substantive procedures

[@Naanofurbusiness]

Seriously your videos are a life saver. Your videos should be used to train audit profs how to teach.

[@amandalovestoaudit]

Thanks Tejeshwar 😊 teaching audit is really tough and it took me a good 5yrs to figure out my style - hopefully you get some good teachers in your other subjects ☺️

[@abejahmodeste4440]

I agree

[@marvelouss719]

Absolutely and positively agreed.

[@GregHuggett]

As a looooong standing auditor ASA 315 understanding the client and risk is .....the more you know the better and it makes the audit more effective, faster and dare I say it...much easier. I am a great one for checking bank statements....they are the open soul of the client. Post balance date bank statement checking is good for after balance date events work and balance sheet substantiation ( as well as accounts payable). One thing I am keen on is looking at payables bank account numbers and also compare with pay roll bank account numbers...work on fraud (ASA 240) . As is obvious each payable and employee should have their own account number so there should be no repetition , otherwise questions need to be asked....thanks for your very good presentation.

[@raymondokello1319]

Thanks, Dr. Amanda you simplify auditing and make it wonderful, Continue the good work. God bless!

[@amandalovestoaudit]

You are very welcome Raymond!

[@madilharoon917]

Dear Dr. Amanda, Thank you millions times for your actually support to us, seriously your videos should be used to train audit profs how to teach. Best Regards

[@amandalovestoaudit]

Thank you Madil ☺️🙏

[@norawu1285]

Thank you Dr. White. Your explanation is way more detailed than my audit course

[@amandalovestoaudit]

You are very welcome 😊

[@hannahzhang871]

Thank you very much Amanda for creating the new series of video regarding Auditing Specific Accounts, which I find very helpful. Here are some new video ideas for the series for your consideration: 1. Auditing Intangible Assets 2. Auditing Financial Instruments (Financial Assets & Financial Liabilities) 3. Auditing Tax 4. Auditing Impairment of Assets 5. Auditing business combinations, subsidiaries, joint arrangements and investments in associates 6. Auditing Share-bsed payments & Earnings Per Share 7. Auditing Equity While topic 5 & 6 are beyond the scope of undergraduate auditing curriculum, if you could share your insights on these, audit practitioners would find these topics very informative and practical.

[@amandalovestoaudit]

Thanks for all of these suggestions Hannah!

[@jyotikataak3576]

Thanks you so much for your support, it become very easy for us to understand by watching video rather than reading

[@amandalovestoaudit]

You are so welcome Neha - good luck in your studies 😊

[@Girlfriend137]

Been waiting on part 2 😊 . Thank you Dr White😊

[@phamthu1260]

Thank you so much for your lesson. After watching 2 videos, I have a picture of AP process on my head. ❤️❤️❤️❤️

[@ES2350]

Great course. Very well organized. Thank you.

[@bernardtackie7400]

Your videos are very helpful and insightful, God bless you, how I wish there's same for financial accounting. To me, saying thank you alone is not enough. You deserve something special

[@bvumayichatikobo3131]

Thanks a lot, Doc, you really made good on what was missing. I hope we had not asked for too much and stretched your busy schedule......greetings to our young upcoming Jnr Auditor you had on show the other day with a jar full of beans.....kkkkk......lots of love from Zim

[@amandalovestoaudit]

Thank you Bvumayi ❤️ stay safe and keep up the hard work!

[@shamsideenolasunkanmisubai4903]

Thank You Dr. Amanda. I enjoyed this Video

[@jpyan5689]

Thank you, Amanda. Your video is very helpful and very practical.

[@sdiogs]

Thanks! Nice explaination for a junior auditor like me,easy to understand

[@amandalovestoaudit]

Glad it helped!

[@抽来迟]

very useful & very appreciated you have posted this video. I even hope I can become one of your students.

[@amandalovestoaudit]

Hi - if you enrol in an undergraduate accounting program at UTS - then the answer could be yes :)

[@uzify116]

great video just like your hair in this one loved it 🤩

[@hasinarafenoarisoa7063]

Thank you very much! watching from Madagascar

[@height1230]

Thanks for this and for all the colourful pens 😊

[@salmancc3002]

class was so good so clear thank you

[@khalidalmulla1481]

its really helpful, many thanks

[@pankajbhandari1623]

Very informative, thank you so much

[@amandalovestoaudit]

You are more than welcome Pankaj :)

[@ebensemeha6028]

Great lecture. Thank you

[@kolithaprabhashwara3920]

Thank you Dr. Amanda

[@dorcasolayiwola5472]

Hi Amanda! Thank you so much for utilizing you immerse knowledge and helping others. You've given me hope to keep going in my auditing career. #newauditor

[@WillardMusowa]

GRN - Goods Received Notes will also help to confirm if goods were received.

[@naifaltoumah1128]

Thank you Dr. White. This is really useful much appreciated, hope you doing the same for Other accounts.

[@AlR-xh7qe]

Hi Amanda, how do you differentiate a test of control from a substantive test? For example, in testing the 3-way match we're verifying that the control was conducted by getting the 3 documents or perhaps a voucher report, but what if the 3 way match was done incorrectly (amounts not matching)? Is that testing done more on the substantive side and for the test of the control we're not really looking into the detailed amounts? What if we end up concluding yes, they have voucher payments for all AP transactions so the Control is effective, but then we discover every single voucher is wrong, how could we have said the control is functioning correctly without actually substantively testing it?

[@popopopo5339]

Usually, test of control is related to ”yes or no” issues, substantive is related to dollar amounts issues.

[@AlR-xh7qe]

@@popopopo5339 I thought of it this way before but since starting in audit I feel it doesn't explain controls vs substantive well. For example, if you're performing a subledger to GL reconciliation and part of the control mentions that any variance > $500k are flagged and investigated that is a control that still deals with a $ amount

[@AlR-xh7qe]

To answer my own question 7 months ago after a year in Big 4 audit I believe the control itself would include the testing attribute that the 3 way match is performed with the $ amounts matching as part of the control test. So you couldn't say the control passed without the $ values matching

[@novitachandraa]

Hi Dr. Amanda.. thanks very much for the insight on auditing A/P. I'd like to ask why I didn't see any cutoff assertion on the payable? I think cutoff assertion will help us to verify the completeness assertion. Since the completeness assertion is not only about the documentation but also all the expense incurred has been recorded in the proper period. Please share your view Mam.. Currently I'm waiting for interview in one big4 firm. Please wish me luck. I really wanna be an auditor bcz of ur videos.. 😇 Many thanks Dr. Amanda.

[@amandalovestoaudit]

Hi Novita! It will be audited as part of testing the transaction component of purchases 😊 Good luck in your interview - you’ll be great - I have confidence in you ☺️

[@novitachandraa]

Hi Dr. Amanda, oh I see.. Many thanks Mam for your support. 🥰

[@tyannaclark1196]

Thank you

[@kabasokabwe7900]

I love what you do

[@WillardMusowa]

Well explained

[@marynalintnaar700]

What types of questions can be asked in the ap clerk interview?

[@timbui9514]

Hi Dr White, Do you have a video about auditing purchases? Many Thanks.

[@amandalovestoaudit]

Hi Tim - do you mean the Expenses component? It is on the list to be tackled (there are about 20 accounts ppl have requested - I’m going to be at this for a while 😂)

[@timbui9514]

@@amandalovestoaudit Yes, Purchases (expense account) for the Income Statement. Thanks.

[@naveenvanam8506]

Thankyou mam

[@gontlentshole5721]

Can or should you do a physical check to make sure the item does exist?

[@amandalovestoaudit]

Do you mean on the item purchased? Sometimes it may be consumed or used before the audit

[@gontlentshole5721]

@@amandalovestoaudit Yes the item purchased. Okay so physical checks work best for inventory during stock take but what about non-consumable items e.g. a projector, laptops, chairs etc. Would I physical check be appropriate?

[@chetanasin9150]

Thanks

[@khalidalmulla1481]

do you have online courses for financial audit ?

[@marcellakaffeer1647]

Great

[@sagar_beingrationalist7401]

I was like, y not Red, I got ans "forget to record "