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Name
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Prepared
by: |
File
ref: |
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Year end: |
Reviewed by: |
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Subject: Creditors’ valuation |
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Objective |
To ensure that creditors have been correctly valued and disclosed. |
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Method |
Select a sample of balances from the aged analysis. Agree the closing balance to supplier statements. Note reconciling items, and ensure correctly treated. Pick one invoice and one payment, agree to supporting documentation and ensure correctly treated. Review credit notes received after the year end, and ensure they have been recorded in the correct period. Agree payments on account to supporting correspondence, and disclose as current assets or accrue related invoices. Agree the total on the aged analysis to the trial balance and accounts. Agree loans and overdrafts to bank certs. or HP agreements. Ensure correctly split between short term and long term creditors. Ensure terms of repayment, interest rate and security over assets disclosed. Ensure NBV’s of leased assets are disclosed. Ensure losses on long term contracts are recognised immediately. Agree total contract values to contracts and total estimated costs to actual accumulated costs after the year end. Ensure stage of completion has been calculated on a reasonable basis. Ensure payments on account and balances on long term contracts disclosed under the relevant accounting standard. |
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Result |
Page ref: Comments: |
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Conclusion |
According to the audit work performed, the objective has been met/has not been met. Problems recorded: |
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