Reference no: EM133205760

Search for Unrecorded Liabilities substantive audit procedure that is typical for a first-year audit associate to work on. In the exercise, you will assist the direct supervisor on the audit team in performing a Search for Unrecorded Liabilities for the client, United Carbonations (UC). Upon completion, you will document the results of your audit procedure in an audit documentation template.

You will then enter any audit misstatement identified during the Search for Unrecorded Liabilities exercise in a template

1. Start with the file "Unrec Lib - Audit Program" - these are the audit procedures for testing for unrecorded liabilities. This is very typical of how these procedures will read and then the testing results are documented and assessed. For this client, the materiality posting threshold is CU95,000 (just stands for Currency Unit). Note: you cannot complete all of these steps, but rather you'll be focusing on testing a subset of the procedures - mainly analyzing the information found on the invoices.
2. Then move to "Unrec Lib - Sample Email" - this is what the associate received. Note: you'll see that prior to the associate obtaining the invoices, the in-charge auditor had made selections and requests from the client; your job is complete the testing for these selections.
3. Deliverable: "Unrec Lib - Search Testwork Template" - This is where you'll document your testing. finish the fields as outlined and then when you find variances/discrepancies, you will document (similar to how we've done for other cases) your results. When you're documenting your results, keep in mind both the materiality for this case as well as the requirement to adjust the financial statements when a material issue has been identified.