Reference no: EM132550408

Question - You are the auditor of Natural Grocer Ltd, a supermarket that sells natural and organic groceries. You have randomly selected a number of suppliers from the list of accounts payable at the end of the year and vouched balances to supplier invoices and receiving reports (i.e., goods received notes) to ensure that goods were received prior to year end. Twenty of the accounts payable were tested and three of the balances were misstated, although none of them by a material amount. You documented in the work papers that no material errors were discovered and that the accounts payable balance is fairly stated.

Required -

1) Explain if the above conclusion is correct and provide support for your decision.

2) Describe any additional procedures you would perform.