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:

Double-Declining-Balance

A method of accelerated depreciation which doubles the regular depreciation amount.

Capitalize Development Costs

The accounting practice of adding the costs associated with developing a new product or service to the balance sheet as an asset, rather than expensing them.

Research Costs

Expenses related to the investigation and discovery of new knowledge that could be useful for the development of new products or services.

Units-Of-Production Method

A depreciation method that allocates an asset’s cost based on its usage, productivity, or units produced, rather than the passage of time.