#22- Search for Unrecorded Liabilities

How do we ensure that the Company has accounted for the expenses incurred before year end? ANd it should be recorded in the appropriate period if the expenses has not been billed by the suppliers?

1. Look through unpaid invoices - look at the description of the services provided, and invoices date, Delivery Order date

2. Look at payment voucher after year end to find out the expenses that should be recorded in prior period, if any

3. Sent confirmation to suppliers to confirm the amount outstanding as at year end

4. Look at the expenses account, for potential indication of services which should be accrued in current year Profit & Loss

5. Perform cut off test.