How do we audit the unrecorded liabilities? Please list out the audit procedures.

1. On payroll test, how do we perform the test? What is a reasonableness test for payroll expense?

2. On fraud, we looked at the fraud triangle, please share with me the triangle.

3. When encounter possible fraudulent items/issues, what should the auditor do? List them out. What should you do if you are a staff?

4. What are the functions/duties/responsibilities of the independent directors? Who needs to have directors? To whom does the independent director reports to?

5. Why does auditor needs to be independent? What does independent mean? Please list/discuss them. Please give an example on what will break the independence?

6. Why do audit rules said to ask about who has not taken vacations? How long has the person been on the same job? Tell me the audit theory behind these inquiries.

7. I mentioned that in addition to speaking to the accounting and finance teams, an auditor needs to go speak to departments outside of these two functions, the reasons being?