Course Introduction
The Accounts Payable and Liability Auditing Training Course provides a comprehensive framework for auditing supplier balances, trade payables, accrued liabilities, provisions, and other obligations reported in the financial statements. Participants learn how to assess whether liabilities are complete, accurate, properly classified, authorized, and supported by reliable audit evidence.
This course develops practical skills for identifying material misstatements and control weaknesses within accounts payable and liability processes. It examines the full transaction cycle from purchase requisition and purchase order through receiving, invoice processing, payment, reconciliation, and financial reporting, enabling auditors to understand where errors, omissions, and irregularities may arise.
Participants will explore audit techniques for detecting unrecorded liabilities, duplicate invoices, fictitious suppliers, unauthorized purchases, incorrect accruals, and inappropriate liability classifications. Particular attention is given to year-end cut-off procedures, subsequent payments testing, supplier statement reconciliation, and analytical procedures used to establish the completeness and accuracy of reported obligations.
The course also addresses the auditing of accrued expenses, provisions, lease-related obligations, tax liabilities, employee-related liabilities, and other financial commitments. Participants will learn how to evaluate management estimates and judgments, assess supporting documentation, investigate unusual movements, and determine whether liabilities have been recognized and disclosed in accordance with applicable accounting requirements.
Through practical audit procedures, case studies, reconciliations, analytical reviews, and risk-based scenarios, participants will strengthen their ability to obtain sufficient and appropriate audit evidence. The training emphasizes professional skepticism, effective working-paper documentation, fraud awareness, and the development of audit conclusions that are clearly supported by evidence.
By completing this course, participants will be better prepared to plan and execute accounts payable and liability audits, communicate control deficiencies, evaluate audit findings, and contribute to reliable financial reporting. The program is suitable for professionals seeking a structured and practical approach to auditing obligations and reducing the risk of financial statement misstatement.
Duration
5 days
Who Should Attend
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Internal auditors responsible for reviewing procurement, accounts payable, and liability processes.
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External auditors performing financial statement audits and substantive liability testing.
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Finance managers overseeing accounts payable, creditors, accruals, and financial reporting.
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Accounts payable managers and supervisors responsible for transaction processing and controls.
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Accountants involved in supplier reconciliations, accruals, provisions, and liability reporting.
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Financial controllers responsible for monitoring liability balances and reporting accuracy.
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Risk and compliance professionals assessing financial control effectiveness and operational risks.
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Audit committee members seeking stronger understanding of liability-related audit risks.
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Procurement professionals involved in controls over purchasing, supplier onboarding, and authorization.
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Treasury professionals involved in supplier payments and cash disbursement controls.
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Fraud investigators examining suspicious supplier transactions and payment irregularities.
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Compliance officers evaluating adherence to financial policies and delegated authorities.
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Public sector finance professionals auditing creditor and expenditure obligations.
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Accounting and auditing consultants providing assurance and advisory services.
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Professionals preparing for responsibilities involving financial statement and payable audits.
Course Objectives
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Develop the ability to plan risk-based audits of accounts payable, accrued liabilities, provisions, and other financial obligations using appropriate audit methodologies.
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Evaluate the design and operating effectiveness of controls covering purchasing, receiving, invoice processing, supplier management, authorization, payment, and liability recording.
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Apply substantive audit procedures to determine whether accounts payable balances are complete, accurate, valid, properly classified, and adequately supported.
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Identify and investigate unrecorded liabilities by applying subsequent payment testing, supplier statement reviews, unmatched invoice analysis, and year-end cut-off procedures.
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Assess the accuracy of accrued expenses and provisions by reviewing supporting calculations, historical trends, contractual obligations, management assumptions, and subsequent settlement information.
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Detect potential fraud and irregularities involving fictitious suppliers, duplicate invoices, unauthorized purchases, manipulated payments, conflicts of interest, and inappropriate liability adjustments.
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Perform effective supplier reconciliations and investigate differences between subsidiary ledgers, supplier statements, purchase records, invoices, payment records, and general ledger balances.
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Evaluate liability classification, presentation, and disclosure to determine whether financial obligations are appropriately reported in accordance with applicable accounting requirements.
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Prepare clear and defensible audit working papers that document procedures performed, evidence obtained, exceptions identified, conclusions reached, and recommended corrective actions.
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Communicate significant findings and control deficiencies effectively while developing practical recommendations that strengthen liability management, financial controls, and reporting reliability.
Comprehensive Course Outline
Module 1: Accounts Payable and Liability Audit Fundamentals
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Understand the nature, scope, objectives, and financial reporting significance of accounts payable and liability auditing.
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Examine major categories of liabilities and identify the assertions, risks, and audit considerations associated with each category.
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Review the accounts payable transaction cycle from purchasing and receiving through invoice processing, payment, and reconciliation.
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Establish a risk-based audit approach for evaluating liability completeness, accuracy, existence, valuation, classification, and disclosure.
Module 2: Procure-to-Pay Processes and Internal Controls
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Evaluate procurement policies, purchase requisitions, purchase orders, receiving procedures, and authorization controls.
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Assess segregation of duties between purchasing, receiving, invoice processing, supplier maintenance, payment, and reconciliation functions.
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Examine three-way matching controls involving purchase orders, goods received documentation, and supplier invoices.
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Identify control weaknesses that may create risks of unauthorized purchases, duplicate payments, fictitious transactions, or unrecorded liabilities.
Module 3: Supplier Master Data and Invoice Auditing
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Audit supplier master files to identify duplicate, inactive, fictitious, or unauthorized vendors and unusual supplier relationships.
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Evaluate supplier onboarding, approval, banking information changes, tax documentation, and periodic master-data reviews.
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Apply invoice testing procedures to verify quantities, prices, terms, approvals, supporting documentation, and mathematical accuracy.
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Identify duplicate invoices, duplicate payments, unusual invoice patterns, and other indicators requiring detailed investigation.
Module 4: Accounts Payable Reconciliations and Audit Evidence
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Perform reconciliations between accounts payable subledgers, supplier statements, general ledger balances, and supporting transaction records.
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Investigate reconciling items, aged differences, unapplied credits, disputed invoices, and unusual outstanding balances.
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Evaluate the reliability, relevance, completeness, and sufficiency of evidence obtained during accounts payable audit procedures.
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Develop effective audit documentation that links identified risks, procedures performed, evidence obtained, exceptions, and audit conclusions.
Module 5: Unrecorded Liabilities and Cut-Off Testing
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Apply detailed procedures for identifying liabilities that existed before period-end but were recorded after the reporting date.
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Perform subsequent payment testing using cash disbursement records, invoices, receiving reports, and supporting documentation.
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Evaluate purchase and invoice cut-off around period-end to determine whether liabilities and expenses are recorded in the correct accounting period.
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Investigate unmatched receiving reports, goods received not invoiced, late invoices, and other indicators of potentially unrecorded obligations.
Module 6: Accrued Expenses and Provision Auditing
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Examine the accounting and audit treatment of accrued expenses arising from services received but not yet invoiced.
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Evaluate management estimates for provisions by reviewing assumptions, historical experience, contractual terms, and subsequent developments.
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Test recurring and non-recurring accruals for completeness, accuracy, authorization, consistency, and appropriate reversal procedures.
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Assess whether provisions meet applicable recognition criteria and whether related uncertainties are appropriately reflected in financial reporting.
Module 7: Tax, Payroll, Lease, and Other Liabilities
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Audit tax liabilities by reconciling tax records, returns, payments, assessments, and balances reported in the financial statements.
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Examine payroll-related liabilities, employee benefits, deductions, statutory contributions, bonuses, and other personnel obligations.
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Evaluate lease liabilities and related obligations by reviewing agreements, payment schedules, calculations, modifications, and supporting documentation.
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Review other liabilities including customer deposits, deferred obligations, contractual commitments, and miscellaneous creditor balances for proper recognition and disclosure.
Module 8: Fraud Detection and Liability-Related Audit Risks
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Identify fraud risks involving fictitious suppliers, unauthorized purchases, duplicate payments, concealed obligations, and manipulated liability balances.
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Apply data analysis techniques to identify unusual supplier activity, duplicate transactions, round-dollar payments, and abnormal posting patterns.
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Investigate suspicious journal entries, manual adjustments, unusual reversals, and transactions posted close to reporting dates.
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Develop professional skepticism and investigative procedures for resolving unexplained exceptions, inconsistencies, and potentially fraudulent activity.
Module 9: Liability Analytics and Substantive Audit Procedures
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Use trend analysis, ratio analysis, aging reports, and period-to-period comparisons to identify unusual movements in liabilities.
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Perform substantive testing of supplier balances, expense accruals, provisions, payments, credits, and liability-related journal entries.
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Evaluate unexpected changes in payable days, supplier concentration, aged balances, payment patterns, and liability-to-expense relationships.
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Integrate analytical procedures and detailed testing to determine whether identified fluctuations are reasonable and adequately supported.
Module 10: Audit Completion, Reporting, and Practical Case Studies
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Evaluate audit findings, determine the significance of identified misstatements, and assess their effect on financial statement reporting.
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Prepare clear audit findings covering condition, criteria, cause, effect, risk implications, evidence, and practical recommendations.
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Complete accounts payable and liability audit working papers, review outstanding matters, and document final audit conclusions.
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Apply the complete audit methodology to integrated case studies involving reconciliations, unrecorded liabilities, fraud indicators, accruals, and reporting issues.
Training Approach
This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.
Tailor-Made Course
This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: training@upskilldevelopment.com Tel: +254 721 331 808
Training Venue
The training will be held at our Upskill Training Centre. We also offer training for a group (at a discount of 10% to 50%) at requested location all over the world. The Onsite course fee covers the course tuition, training materials, two break refreshments, buffet lunch, airport transfers, Upskill gift package, and guided tour.
Visa application, travel expenses, dinners, accommodation, insurance, and other personal expenses are catered by the participant
Certification
Participants will be issued with Upskill certificate upon completion of this course.
Airport Pickup and Accommodation
Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: training@upskilldevelopment.com, +254 721 331 808
Terms of Payment:
Unless otherwise agreed between the two parties’ payment of the course fee should be done 3 working days before commencement of the training so as to enable us to prepare better.
