Audit Templates (Standalone)

Initial Recognition of Prepaid Expenses

1. When coding supplier invoices for entry into the accounting system, obtain written approval from the assistant controller that a billing should be coded as a prepaid expense. Otherwise, the default entry is to record an expenditure as a expense.

Additional steps include:

• Subsequent Amortization of Prepaid Expenses
• Reconciliation of Prepaid Expenses

Download the workpaper template for prepaid expenses.