Marsh, CPA, is the independent auditor for Compufast Corporation (Compufast), which sells personal computers, peripheral equipment (printers,

Question:

Marsh, CPA, is the independent auditor for Compufast (Compufast), which sells personal computers, peripheral equipment (printers, data storage), and a wide variety of programs for business and games. From experience on Compufast’s previous audits, Marsh knew that the company’s accountants were very much concerned with timely recording of revenues and receivables and somewhat less concerned with keeping up- to- date records of and other liabilities. Marsh knew that the control environment was strong in the asset area and weak in the liability area.

Required:
List substantive procedures that Marsh and the audit staff can perform to obtain reasonable assurance that Compufasts unrecorded liabilities are discovered and adjusted in the currently under audit.

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