Basic Staff Training: Auditing Accounts Payable

Author: Robert K Minniti

CPE Credit:  2 hours for CPAs

Are you staff accountant planning on performing an audit on accounts payable? Whether you are a new auditor or just need a refresher on this topic this course is for you. We will review steps for planning an A/P audit, testing internal controls over A/P, conducting analytical procedures and performing substantive testing.

From an audit procedure standpoint this session will also focus on the techniques and documentation needs that staff accountant needs to know. In addition, the session will offer practical advice to the staff accountant on conducting an audit of accounts payable.

Publication Date: September 2019

Topics Covered

  • Accounts Payable: Planning the Audit
  • Staff Level Audit Planning
  • Audit Planning ‐ AS 2101
  • Independence Review
  • Proficiency Review
  • Budget Review
  • Audit Planning ‐ AS 2101.10
  • Audit Planning ‐ AS 2101.15
  • Risk Assessment
  • Fraud Review
  • Persuasiveness of Audit Evidence
  • Sampling
  • Sampling Risk
  • Statistical Sampling
  • Non‐Statistical Sampling Risk
  • Hypothesis Testing
  • Accounts Payable: Conducting Field Work
  • Audit Objectives
  • Audit Risk Model
  • When Reviewing Financial Statement Transactions
  • Internal Controls
  • Internal Control Review
  • Walkthroughs — Common Questions to Ask
  • Analytical Procedures for Accounts Payable
  • Benford's Law
  • Vendor Reviews
  • Invoice Reviews
  • Contract Reviews
  • Audit Trail Reviews
  • Substantive Testing
  • Red Flags for Accounts Payable Fraud
  • Examples of Expense Reimbursement Frauds
  • Common Workpapers

Learning Objectives

  • Identify the steps in an audit of accounts payable
  • Identify audit procedures for auditing accounts payable
  • Recognize what would be least likely impair an auditor's independence
  • Describe what you should do, while testing travel expenses you noticed the CEO was inflating her expense reports with altered receipts
  • Recognize what starts with the transaction record and verifies there is a corresponding source document
  • Identify what an auditor would expect when applying Benford's Law
  • Describe substantive test
  • Recognize common workpapers for an external audit of accounts payable
  • Identify the materiality threshold for fraud
  • Describe which type of sampling gives all items an equal chance of being selected
  • Identify the correct formula for the audit risk model
  • Recognize what would be part of an audit trail review
  • Describe red flags for accounts payable fraud
  • Identify how an auditor would normally test for cashed checks
  • Recognize how the effectiveness of internal controls are evaluated
  • Identify examples of calculating the accounts payable turnover ratio


Instructional Method

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites

Advance Preparation

Registration Options
Regular Fee $59.00

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