How do you test for unrecorded liabilities?
How do you test for unrecorded liabilities? Search for Unrecorded Liabilities ExamplesSelect a sample of payment transactions after year-end.Examine the selected payments with the supporting documents (e.g. suppliers' invoices) to determine whether the liabilities were at the balance sheet date.Inquire the related personnel about any unrecorded invoices. How do you audit unrecorded liabilities? Audit Procedures to search for unrecorded liabilities.The auditor shall verify purchase orders and all supporting documents with journal entries related to purchases and cash disbursals. Analytical procedures are done in order to test the trend and look for unusual relations. When searching for unrecorded liabilities at year...