Auditing - Audit Program for Trade Creditors

Audit Program for Trade Creditors

Risk Alerts

Condition                                                                   Possible reason / risk

There are large number of unfilled order                    Goods have been received but have not been processed.

There is high incidence of returns to suppliers            Inadequate provision for returns has been made.

Controls and procedures relate primarily to year-end adjustments.
                                                     Common controls
There are defined cut off procedures specifically monitored by appropriate personnel.

Supplier statement reconciliation is regularly performed.

Unmatched goods received notes/receiving reports are followed up.

Substantive procedures
  1. Compare trade creditors, purchases and payments to prior periods and budgets seeking explanations for unusual items and significant variances.
  2. Review monthly movement of trade creditors in comparison to purchases and payments particularly around the period end.
  3. Analyses the turnover of trade creditor – ratio of creditors to total operating costs (ie not financing and investing activities) – and compare to prior periods and budgets, seeking explanations for unusual items and significant variances.
  4. Analyze the ratio of purchases in the last month of the period to total purchases.
  5. Review the gross profit margin achieved particularly around the period end and compare to prior periods and budgets seeking explanations for unusual items and significant variances.
  6. Review the ratio of individual expense accounts to sales or other appropriate base.
  7. Review invoices recorded after the period end and review subsequent cash payments.
  8. Enquire whether there are any significant purchase or expenses around the period end. Check that these have been accounted for in the correct period.


  1. Vouch a sample of goods received notes around the period end to ensure cut off procedures have been correctly applied.


Anonymous said...

hello!,I love your writing so so much! percentage we be in contact more approximately your article on
AOL? I need a specialist in this house to resolve
my problem. May be that is you! Looking forward to peer you.

Feel free to visit my homepage calories Burned walking calculator

Anonymous said...

An execllent post! Just wondering if anybody has
any any links or screenshots of excellent Email Templates used?
It's always good to see templates, one other thing see examples to benchmark as good communication. Will be keen to see any links.

My web blog: Author's external
home page...

Anonymous said...

I visited several web sites but the audio feature for
audio songs current at this website is really superb.

My page; free Email newsletter templates

Anonymous said...

Hi to all, how is all, I think every one is getting more from this web page, and your views are nice in favor of new people.

Here is my website unconscious

Anonymous said...

Hello to every one, it's really a good for me to go to see this web site, it includes helpful Information.

Look at my web blog translation

Anonymous said...

My partner and I stumbled over here different page and thought I
should check things out. I like what I see so now i am following
you. Look forward to looking over your web page yet

Visit my site ... email templates

Anonymous said...

Good day! Do you use Twitter? I'd like to follow you if that would be ok. I'm absolutely enjoying your
blog and look forward to new posts.

Also visit my website; bridal eye makeup

Anonymous said...

Hello! Someone in my Myspace group shared
this site with us so I came to take a look. I'm definitely loving the information. I'm bookmarking
and will be tweeting this to my followers! Fantastic blog and fantastic design and

Feel free to surf to my web-site :: html email templates

Anonymous said...

Wonderful article! We will be linking to this particularly great content on our
website. Keep up the great writing.

Feel free to visit my page: protectionism

Anonymous said...

Very good blog! Do you have any recommendations for aspiring writers?

I'm planning to start my own website soon but I'm a little lost on everything.
Would you recommend starting with a free platform
like Wordpress or go for a paid option? There are so many
choices out there that I'm completely overwhelmed .. Any suggestions? Appreciate it!

Here is my weblog - free email marketing templates

Anonymous said...

An interesting discussion is worth comment. I think that you ought to write more about this issue, it may
not be a taboo subject but usually folks don't discuss these topics. To the next! Many thanks!!

my web page email marketing reseller

Anonymous said...

Hi there! I know this is somewhat off topic but I was wondering if you knew where I could find a captcha plugin for
my comment form? I'm using the same blog platform as yours and I'm having difficulty finding
one? Thanks a lot!

Look into my webpage ... email Invitation templates

Anonymous said...

Why viewers still use to read news papers when in this technological globe the whole thing is presented
on net?

My blog post: Email Stationery templates

Anonymous said...

Hello, i read your blog occasionally and i own a similar one and i
was just curious if you get a lot of spam feedback?
If so how do you protect against it, any plugin or anything
you can recommend? I get so much lately it's driving me mad so any support is very much appreciated.

Have a look at my homepage email newsletters templates

Anonymous said...

Pоst writing is also a fun, іf you knοw after that you сan wrіte otherwіse it is complicated
to wгite.

Vіsit my weblοg: emaіl newѕlettеr tеmρlаteѕ - -