Question: Consider the audit procedure referred to as the search for unrecorded liabilities. a. How does the auditor perform it? b. When does the auditor perform

Consider the audit procedure referred to as the “search for unrecorded liabilities.”

a. How does the auditor perform it?

b. When does the auditor perform it?

c. What is its purpose?

d. Describe the assertions associated with the search for unrecorded liabilities.

Explain why these assertions are important for the acquisition and expenditure process.

e. Identify the accounts that can be misstated if a search for unrecorded liabilities is not conducted.

f. If these accounts are misstated, how will outsiders be affected? Explain your answer.

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