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How can I verify the trade payables appearing i...

How can I verify the trade payables appearing in my client's books of account?

How can I verify the trade payables appearing in my client's books of account?

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Chiranjibi Chapagain Mar. 12, 2018

Trade payables can be verified with the help of following points:

  • Check the adequacy of cut off procedure to ensure that transaction of next period are not accounted and all transactions of year end are accounted.
  • Check posting in the bought ledger from books of prime entry.
  • Compare the balances in the schedule of trade payables with balances in bought ledger.
  • Compare the balances with the confirmation or statement of account received from trade payables.
  • Pay special attention to long outstanding items and enquire about the reason thereof.
  • Verify subsequent payments and reversal entries in the bought ledger of year end entries.
  • See that trade payables are classified and shown in the balance sheet as per requirement of Schedule III to the Companies Act, 2013.

How can I verify the trade payables appearing in my client's books of account?

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