Method
How we test accounts payable
A repeatable sequence from population definition to signed findings—built for controllers who need workpapers others can follow.
Designed around the period under review
We do not begin with a fixed checklist copied from another industry. The method starts with your AP process map, approval matrix, and the systems that hold invoices, receipts, and payments. Attribute tests are then written against those controls for the dates you name.
Sampling is statistical or judgmental depending on population size and risk concentration. Either way, the selection logic is written into the plan before fieldwork starts.
Four stages
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Frame the population
Agree invoice versus posting versus payment date basis. Confirm entities, currencies, and whether intercompany AP is in or out.
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Set attributes
Map each control—matching, authorization, cut-off, vendor change—to a yes/no test that cites a document.
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Execute and inquire
Complete workpapers, chase missing evidence once, then record exceptions with AP’s explanation attached.
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Report and hand off
Issue a draft memo, collect management responses, and deliver final files suitable for internal or external audit reliance.
Attributes we commonly test
- Invoice agrees to PO and receipt within documented tolerance
- Approver falls within the matrix for amount and vendor type
- Payment date aligns with cut-off rules for the period
- Vendor bank details match the authorized master record
- Duplicate invoice numbers or amounts are investigated