Part A: When performing procedures in a search of unrecorded liabilities, auditors can utilize various sources of evidence/information (e.g., documents, files, management and clerical personnel).

Required: List at least five, but not more than seven, sources of evidence/information for the search for unrecorded liabilities.

Part B: You are in the last part of audit evidence gathering for the Anderson Corporation with a year end of June 30, 2018. Andersons CEO, Lisa Anderson, states that any invoices relating to the June 30, 2018 year end that were received after the year-end voucher register was closed for the June 30, 2018 year were recorded by Andersons CFO via a year-end adjusting journal for the year under audit. Andersons internal audit team also tested for unrecorded liabilities after the June 30, 2018 year end close. Lisa has indicated she will also provide a letter certifying there are no unrecorded liabilities for the June 30, 2018 year end.

Required:(a) Should your procedures for unrecorded liabilities be affected by the fact that the client made a journal entry to record June 30, 2018 that were received later? Explain your reasoning for your answer.

(b) Should your test for unrecorded liabilities be affected by the fact that a letter is obtained in which a responsible management official certifies, to the best of that persons knowledge, all liabilities that have been recorded? Explain your reasoning for your answer. (c) Should your test for unrecorded liabilities be eliminated or reduced because of the internal audit work. Explain your reasoning for your answer. What sources, in addition to the voucher register for the new year end, should you consider for locating possible unrecorded liabilities?