In this mini-case you will focus on performing one aspect of the test of details on the accounts payable balance — the search for unrecorded liabilities. To Identify possible unrecorded liabilities you will compare the payments mode after year end with the accounts payable listing as of the end of the year. In performing this comparison particular attention should be given to any payment made on the disbursements journal for which there was not on accounts payable balance as of year end. Your responsibility Is to identify the transactions on the cosh disbursements journal that the audit team should investigate and review further to determine if a liability should have been recorded as of year end
Work paper 11-2 contains a listing of the cash disbursement journal entries made in the first few days of the following year end Compare the transactions on the cash disbursements journal with the accounts payable listing on work paper 11-1 Use the appropriate tick mark to evidence your review of each transaction.
