In Tab F-1 'Liabilities Lead Sheet', you will see an unfinished workpaper. Your job is to perform a 'search for unrecorded liability' procedure and enter the audit adjustment amount for Account Payables (highlighted in yellow)

In Tab F-4 'Cash Disbursement Journal',an audit staffhas already selected a sample of cash disbursements made in the subsequent year, investigated them, and documented in the 'Note' column the purpose of these payments.

1. Read 'Notes' for each payment. Find payments that should be included in the 2020 liability balance: Document next to each item whether the item is an expense/purchase for year 2020 (Column G).
2. If the item is an expense for year 2020 but was paid in 2021, see if that payment was properly recorded as an outstanding A/P in AP Aged Schedule (Tab F-3). If not, document in Tab F-4 that the amount is unrecorded liability for year 2020 (Coiumn H).
3. Sum all the 2021 payments that you found they should have been recorded as 2020 A/P but were not recorded, and document the adjusting journal entry for A/P (that you will propose to the client) in the Liabilities Lead Sheet (Tab F-1).