Webclass 137: Suppliers that are debtors and outstanding supplier debtor transactions – does your audit team see them as a risk immediately or are they confused about what we mean?

Q1. Why are suppliers called creditors?

Because we would usually expect them to have a balance of zero or negative

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Because we would usually expect them to have a balance of zero or positive

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Q2. If a supplier has a debtor balance – what might this mean?

That the supplier owes you money or that a down-payment has been made without a debit note issued

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That there has been some theft of stock from the warehouse

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Q3. If we see the journal entry: Credit inventory and debit GR/IR, what could this mean?

That there has been a return of invntory, or that the GR/IR account is being used to write-off inventory due to inventory leakage

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That the supplier has sent through the invoice, following a shipment of inventory

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Q4. Why is it not sufficient to only consider the total balance per supplier?

Because there may be positive transactions within an overall creditor balance

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Because the balance shows the situation during the entire period of the audit

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Q5. When creating a bar chart on financial accounting data, why should we always split the debit and credit values in stacked bars?

Because if we are looking at supplier transactions then we will be interested to see outstanding debit items that might be hidden in a total

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Because it is important not to mix values relating to suppliers with those relating to customers

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Q6. Why might we want to have a graph that has one dot per transaction?

So that we can immeadiately see if the high value outstanding balances are due to one particular transaction or many transactions

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So that we can see the total balance per supplier more easily

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Q7. Because this enables us to see the situtation of the outstanding balance in the past, whereas if we get reports on the day of the audit about detailed outstanding balance, then we will not be able to see if there was a clean-up before the audit started

Because this enables us to see the situtation of the outstanding balance in the past, whereas if we get reports on the day of the audit about detailed outstanding balance, then we will not be able to see if there was a clean-up before the audit started

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Because it helps us to identify individual suppliers that had a long outstanding balance in the past

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Q8. What is a cartesian product?

A cartesian product is all the combinations that are found in a data result set after doing a join on join keys that are not unique

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A cartesian product is the result of a join between two tables that have unique keys

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Q9. Why did we need to apply a filter to the result set after obtaining all the combinations of dates and snapshot dates?

So that we have only the date combinations for which the transaction was outstanding at the snapshot date

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So that we can remove duplication from the result data set

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Q10. When looking at ITBR, why might we be interested in a balance that increases over time?

A balance that increases over time could indicate that the ITBR suspense account is used as a general bucket for posting fictitious entries to

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A balance that increases over time could indicate that the organization is clearing the ITBR account in a timely manner

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Q11. Why might we want to sample high credit transactions to ITBR that occur just before year-end?

Because these could indicate that transactions are entered before the end of the year to use up budgets

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Because this could indicate that cost on the P&L is too low for the fiscal year in question

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WC137 – Suppliers that are debtors and outstanding supplier debtor transactions – does your audit team see them as a risk immediately or are they confused about what we mean?

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Webclass 137: Suppliers that are debtors and outstanding supplier debtor transactions – does your audit team see them as a risk immediately or are they confused about what we mean?

admin June 9, 2026

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