Puffer, Inc. is a C-Corporation with a 70,000 square foot location in San Marcos, Texas. The  Company's core business is manufacturing high end equipment for oil rigs, oil refineries and other  factory equipment. At the end of 2022, Puffer, Inc. had 150 full time employees and for the last  three years averaged over $90 million in revenue. To provide operating funds, the Company  established a line of credit with Commerce Bank in 2010. Commerce bank requires Puffer to have annual financial statement audits. Puffer's audit committee retained ABC, LP to perform its annual audit.
You are an intern with ABC and have been assigned to the Puffer audit. During the audit planning  meeting, accounts payable was determined to be a significant account with moderate risk of  material misstatement. One of the tests the engagement team has decided to perform is a test for  potential unrecorded liabilities. The audit senior on the engagement has asked you to perform this procedure.
Answer the Following:1. Describe how you would test for unrecorded accounts payable. Be as descriptive as  possible to show you have a strong conceptual understanding. Talk about the important  assertions, test objectives, and what evidence you would acquire. The goal is that someone could see your narrative and actually understand how to test the account.
The accompanying Excel file called "Accounts Receivable Aging." This represents the final accounts receivable detail listing for Puffer's receivables. Describe (and show) how you would select a monetary unit sample for these items.