ACCA Audit and Assurance (F8) Practice Exam 2025 – The Complete All-in-One Guide to Achieve Exam Success

To identify discrepancies in trade payables effectively, comparing supplier statements against the purchase ledger is the most appropriate approach. This method allows the auditor to ensure that all transactions related to trade payables are accurately recorded.

The purchase ledger reflects all purchases made on credit from suppliers, while supplier statements provide a summary of all transactions recorded by the supplier. By comparing these two sources, an auditor can verify whether the amounts recorded in the purchase ledger align with what the suppliers have documented. Any differences can indicate potential issues such as unrecorded liabilities, misstatements, or errors in posting, which requires further investigation.

In contrast, comparing the purchase ledger to company policies, bank statements to the cash book, or the sales ledger to supplier statements may not directly provide insight into discrepancies specifically related to trade payables. Those comparisons may serve different purposes, such as assessing compliance with internal procedures or verifying cash transactions, but they do not specifically address the accuracy of trade payables, which is crucial for effective financial reporting and auditing.