the use of services, Input factors, therefore, it is related to the cost of goods sold, affecting the profitability of the business AP is an important amount forming the capital source of the enterpri.
the use of services, Input factors, therefore, it is related to the cost of goods sold, affecting the profitability of the business AP is an important amount forming the capital source of the enterprise, greatly affects the capital structure of the enterprise, reflects the amount of capital that is appropriated from outside to form their own capital, reflects the self-financing capacity of enterprises AP must be managed closely because errors in the reflection of this item will affect the assessment of the solvency of the enterprise because the important ratios reflecting the solvency of the enterprise are related to the debt of the public laboratory such as: Cash ratio, Current ratio, etc.… From the above characteristics, the effects on the audit of payables to suppliers are as follows: Because liabilities are closely related to purchased goods, businesses can create fake sellers to create fake shipments to increase inventory value and increase assets for businesses, increase costs, reduce profits, therefore, audit requirements must be stricter AP is often understated to enlarge their financial position, reduce difficulties, etc These risks require stricter audits of doubtful debts and a more prudent audit of such debts with transactions arising in the following period Thus, if the AP is misjudged, it will affect many items in the financial statements, it makes readers misunderstand about the solvency as well as the financial situation of the company AP is related to production and business expenses, affects the cost of capital of the enterprise, thereby, affects the profit, has a material influence on the financial statements of the enterprise Therefore, the audit of the AP is extremely important in the audit of the financial statements, helping the auditors to give a more honest opinion on the audited financial statements I.1.1 Accounting for accounts payable Accounting principles: According to the current accounting principles, when accounting for the AP to suppliers, it is necessary to adhere to the following principles: