Oceanview Marine Company 30-3

Audit Program — Accounts Payable BC 2/08/2019

December 31, 2018

AUDIT PROCEDURES * INIT W/P COMMENTS

MODIFICATIONS TO AUDIT PROGRAM

1. Based on the results of previous audit procedures, BC 30-6 No modifications of audit

complete the Planned Tests of Balances Matrix program deemed necessary.
for accounts payable and, if necessary, make
appropriate modifications to this audit program.

TESTS OF BALANCES
a. Done. No exceptions.
2. Obtain or prepare a listing of accounts payable as BC 30-7
b. Judgmentally selected
of the balance sheet date: to
and traced (1) a sample
(a) foot the listing and trace total to the general D 30-10
of 25 vendors’ totals
ledger; from the listing to the
(b) for selected individual accounts, trace from D A/P subsidiary records;
the listing to the accounts payable and (2) a second,
subsidiary records, and vice versa; separate sample of 25
(c) for accounts payable that are not tested as E vendors’ accounts from
part of subsequent disbursement testing the subsidiary records to
(step 4c), examine invoices supporting the listing. No
accounts payable greater than tolerable exceptions.
misstatement; c. Done. No exceptions.
(d) discuss with client old or disputed payables; A
d. None per discussion with
(e) ascertain whether assets have been pledged Ro Cynthia.
or whether other security has been provided P
for accounts payable. e. None per discussion with
Cynthia.

3. Identify non-trade and other miscellaneous Cl BC 30-7 None. All non-trade

accounts payable included in the listing of to accounts are in separate
accounts payable. 30-10 G/L accounts (e.g., interest
payable).

* Audit Objectives:
Accuracy Classification Completeness Cutoff Detail tie-in Existence
Presentation and disclosure Rights and obligations
 Oceanview Marine Company 30-4
Audit Program — Accounts Payable (continued)
December 31, 2018

AUDIT PROCEDURES * INIT W/P COMMENTS

30-11
4. Obtain list of cash disbursements after year-end A BC to
to perform search for unrecorded liabilities and Co 30-19
tests of year-end payables balances: Ro
a. determine scope of testing; BC 30-20
b. select items for testing;
c. trace amounts representing accounts payable
at year-end to listing of accounts payable;
d. evaluate and summarize any payments
representing potential omissions or
misstatements of year-end accounts;
e. evaluate acceptability of the population.

ANALYTICAL PROCEDURES

5. Compare accounts payable and accrued liabilities E BC Increase due to higher

in the current year to prior years and obtain Co volume and increased
explanations for significant differences. A inventory.

STATEMENT PRESENTATION

6. Determine if groupings are consistent with P BC Yes. Consistent.

previous periods.
A
7. Reclassify any debit balances. P BC None

8. Verify that accounts payable is classified as a P BC Done

current liability on the balance sheet.

* Audit Objectives:
Accuracy Classification Completeness Cutoff Detail tie-in Existence
Presentation and disclosure Rights and obligations
 Oceanview Marine Company 30-5
Audit Program — Accounts Payable (continued)
December 31, 2018

AUDIT PROCEDURES

CONCLUSION

9. State, in your opinion, if the accounts payable

balance reported in the financial statements is
fairly presented and is in accordance with
GAAP.