1. Perform analytical procedures for accounts payable of J & J Auto Repair Service in the following manner:

(a) Calculate and list all necessary figures and comparisons.
(b) Explain what the result of each may indicate for the balance in accounts payable.

2. Using the information provided in the example and the results of analytical procedures performed in Problem 12-32, explain the substantive audit procedures, audit evidence, and related management assertions that you would need for the test of details of the accounts payable balance.

Substantive procedure:-
1. Obtain the client account and physical inventory balance
2. Yearend cutoff procedures are performed
3. Review invoices by vendor to test that title in goods has been transferred
4. Check whether the valuation method in respect of involves sent is appropriate.
5. Check for the obsolete inventory and adequate provision for purchase return has been made or not should be checked.

Management Assertions are:-
Existence: - Check whether the amount due exists for payment on the balance sheet date.
Obligation: - Verify whether the amount is obligations by the company
Valuation: - Ensure that account payables are properly measured

Audit evidences are:-
1. Clients confirmation showing the balance due
2. Party ledger account as per the company's book
3. Purchase invoice.

Accounts Payable Subsidiary Ledger Balances (as of year end)

Purchases Subsidiary Ledger Balances (as of year end)

Cost of Goods Sold Ledger Balance (as of year end)