A lot of money flows through accounts payable (AP). So, it’s important to get it right. Auditors can help by performing these four procedures on AP: 1) reviewing standard operating procedures (SOPs), 2) analyzing source documents (such as purchase orders, invoices and bank records), 3) confirming balances with vendors, and 4) comparing the AP ledger to the financial statements. To facilitate fieldwork next audit season, let’s discuss the procedures we plan to use on your AP and what documents and workpapers you can prepare before we arrive
