## Audit of Trade Payables: Completeness & Cut-off
### The Completeness Assertion
Completeness means all genuine liabilities that exist at the balance sheet date have been recorded. For trade payables the risk is understatement — the entity may omit liabilities to present a healthier position.
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### Procedures
#### 1. Cut-off Procedures (last 5 days before 31 March)
- Check the last 5 days of transactions before year-end.
- Verify goods received before 31 March are included in both Purchases and Trade Payables.
- Risk reality: if goods arrive before 31/3 but the payable is not booked, liabilities are understated.
#### 2. Test Samples from the Accounts Payable Ledger
- Select a sample of purchase/expense entries from the A/P ledger.
- Examine supporting documents — purchase invoices, GRNs, purchase orders.
- Confirm entries are recorded at correct values.
#### 3. Match Purchase Invoice Date → Gate Entry Date
- Compare the invoice date with the inward gate entry register.
- Confirms the purchase is recorded in the correct accounting period.
#### 4. Review Subsequent Expense Vouchers (Post Balance Sheet Date)
- For material items: examine vouchers raised after year-end.
- These may reveal liabilities that existed at year-end but were omitted.
#### 5. Statutory Dues — Reasonability Test
- Perform a reasonability test (e.g. GST output tax liability).
- Formula: Sales × Applicable Rate = Expected Liability
- Verify challans paid after period end for dues as at 31 March.
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### Summary Table
| Procedure | Assertion Addressed |
|---|---|
| Cut-off check (last 5 days) | Completeness, Cut-off |
| Sample from A/P ledger + documents | Completeness, Accuracy |
| Invoice date vs gate entry date | Cut-off |
| Post-year-end voucher review | Completeness |
| Statutory dues reasonability | Completeness, Accuracy |