When Performing Procedures in a Search of Unrecorded Liabilities, Auditors

question 40

Essay

When performing procedures in a search of unrecorded liabilities, auditors can utilize various sources of evidence/information (e.g., documents, files, management and clerical personnel).Required:List at least five, but not more than seven, sources of evidence/information for the search for unrecorded liabilities.(Do not write procedures. Do not take time to write about particular evidence that can be obtained or reasons for using the sources.)

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Definitions:

Accounting Cycle

the series of steps followed in the accounting process, from the initial recording of transactions to the preparation of financial statements.

Adjusted Trial Balance

A record containing all accounts with their adjusted balances, utilized for the creation of financial statements.

Accounting Cycle

The series of steps followed by an accounting department to collect, process, and report financial transactions each period.

Closing Entries

Accounting journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent accounts, thus preparing the books for the next period.