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Question
Trade payables transactions and balances
Although not complex, the volume of trade payable transactions is quite high. There is a risk with trade payables balances that personnel may fail to record them in the books as the company has applied to the bank for an increase in its overdraft and wants to impress the bank with a strong current ratio.
At Wending a request form is first prepared for all items that are to be paid through the cash disbursements system. The previous trade payables clerk, who had been with the company for eight years. Left in December 2013. A new clerk was hired but is not yet thoroughly familiar with the procedures.
REQUIRED
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