A common step in the testing for accounts payable is to test subsequent disbursements for improper/proper inclusion/exclusion in year-end accounts payable CONCEPT REVIEW A common way to test accounts payable is to examine the check register after period end and make selections for testing. Items are selected and then examined for detail. A determination is then made to conclude whether the amount should have been a liability as of year-end and, if so, if it was recorded as such 1. When searching for unrecorded liabilities, the auditors consider transactions recorded 2. Accounts payable 3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider 4. When auditors find unrecorded liabilities, before adjusting they must consider 5 Auditiors need to consider terms for determining ownership and whether a liability should be year-end after can be mailed to vendors from whom substantial purchases have been made recorded. Type here to search