Examples of a client not using prenumbered receiving reports, a client not recording acquisitions until cash disbursements are actually made, and because of cash shortages paying bills several months after their due date generally force the auditor to perform more extensive substantive testing of the details of accounts payable.

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If a client does not use prenumbered receiving reports, it is difficult to verify the completeness of accounts payable and the auditor may need to perform more extensive testing. Similarly, if a client does not record acquisitions until cash disbursements are made or pays bills late due to cash shortages, the auditor may need to perform more extensive testing to ensure the completeness and accuracy of accounts payable.

Examples of a Client Not Using Prenumbered Receiving Reports, a Client