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Question & answer on Appropriate audit procedure

Choose the appropriate audit procedure to search for unrecorded liabilities.

The completeness assertion is associated with the unrecorded liabilities.  Purchase orders, delivery, invoices and others documents of receiving accounting records are linked with the sourcing documents of unrecorded liabilities. There are six steps that are appropriate in procedure search for unrecorded liabilities.  The first step is review sales and purchase of client cut off procedures to record all record documentations in well manner.

 After that, reviewing unprocessed invoices as well as unmatched purchase orders assessed to insures to record liabilities. Unmatched receiving reports review to obtain search for unrecorded liabilities. The third steps contain on confirmation request of transaction and balances are evaluated to investigate the missing liabilities. Sending such information indicates any hidden information would be review easily.    In the fourth step performance of analytical procedures taken to reveals the major considerations towards the search of unrecorded liabilities. Assessing and evaluating petty and sundry cash expenses after year end. Such information identified any missing information and give appropriate indication for unrecorded liabilities.

 In the last step, inquiring and investigated the management of client about any unrecorded liabilities to ensure the capabilities of audit procedures.   The client management documents are reviewed to recognized liabilities that are unrecorded. The viable of documents as well as sample of transactions to perform audit procedures recognized to increase efficiency in performance of audit.  Thus to sum up all discussion about the appropriate audit procedure to search for unrecorded liabilities, above mentioned procedures is best practice to investigate unrecorded liabilities in effective way.

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