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As part of the verification work on accounts payable, Harman carried out a search for unrecorded liabilities. He tested a random sample of 20 payments

As part of the verification work on accounts payable, Harman carried out a search for unrecorded liabilities. He tested a random sample of 20 payments made after 30 June, and found 3 instances of cheques that related to services provided in June, which had not been accrued. However, as the total of the 3 cheques was immaterial, she concluded that no adjustment was required for unrecorded liabilities

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