During the course of any audit, the auditors are always alert for unrecorded accounts payable or other

Question:

During the course of any audit, the auditors are always alert for unrecorded or other unrecorded liabilities.
For each of the following audit areas, (1) describe an unrecorded liability that might be discovered and (2) state what auditing procedure or procedures might bring it to light.
a. Construction in progress (property, plant, and equipment).
b. Prepaid insurance.
c. License authorizing the client to produce a product patented by another company.
d. Minutes of directors’ meetings.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...