[Anonymous]

Today, while assisting the AP head, I found a statement from an auditor to one of our biggest suppliers asking to verify our payables balance for the month of September. Their AR aging compared to our payables was off by 700,000. Which prompted this question.

Let’s say the AP head at our company is disorganized, and for some reason the supplier did send us invoices for that 700,000 balance, but even at our close, the AP head at my company did a bad job. How would the auditor of that supplier know that 700,000 in overstated revenue wasn’t the audited party’s attempt to cook the books, versus my company has an awful AP head working? I mean in auditing, you learn payables isn’t audited as much as revenue, but they also say that they are different sides to the same coin(which is complete BS if you ask me)

. . . not to say that my AP coordinator is a stupid lazy person . . .

and for manufacturing companies, don’t they measure inventory and use shipping dates as a more reliable way of measuring revenue? Real life isn’t making sense to me anymore.

[Anonymous]

Adding to month end closing process, I see that we do cross a lot of dates that come near the end of the month and move it to the first of the next month. Which reflects the amount of backlog and disorganization of my company.(we received the invoices before month end)

[Author]

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