Surgent's Surging Auditors: Searching for Unrecorded Liabilities - Download

Overview

The manager for Home D‚cor and More (HDM) requests that participants conduct a search for unrecorded liabilities. The company experienced recent turnover in the accounts payable department so there is extra concern that all liabilities have been captured as of year-end. Participants will use their expertise to make resource requests from the HDM accounting team. Once they receive the supporting documentation, they will trace transactions to the detail to identify whether each selection is properly recorded as of year-end. The manager will share feedback on the results of the search!

Highlights

Optimal resource requests to support an appropriate search for unrecorded liabilities
Tracing transactions to the detail to identify whether liabilities are properly recorded
Evaluation of evidence to meet management’s assertions

Prerequisites

None

Designed For

Accounting professionals who want to practice decision making related to the search for unrecorded liabilities ?

Objectives

Perform a search for unrecorded liabilities as of the balance sheet date
Identify the accounting treatment for accounts payable, accrued liabilities and accrued expenses
Understand the risks involved in accounts payable, accrued liabilities and accrued expenses at the assertion level
Determine the appropriate audit evidence to obtain for the search for unrecorded liabilities
Evaluate results from a search for unrecorded liabilities and make proposed adjustments based on the evaluation of the evidence
Assess the propriety of accrued estimates and accounts payable
Determine if proper cut-off procedures were followed