The search for unrecorded liabilities consists of procedures designed specifically to detect _______.
A)significant unrecorded obligations at the balance sheet date (or as of an interim date)
B)insignificant unrecorded obligations at the balance sheet date (or as of an interim date)
C)significant unrecorded obligations at the income statement date (or as of an interim date)
D)significant recorded obligations at the balance sheet date (or as of an interim date)

Question

Quizplus · Accepted Answer

The search for unrecorded liabilities is specifically designed to detect significant unrecorded obligations at the balance sheet date (or as of an interim date). These obligations can have a material impact on the financial statements and need to be identified and properly recorded to ensure the accuracy of the financial statements. The search for unrecorded liabilities does not focus on insignificant obligations or those at the income statement date.

The Search for Unrecorded Liabilities Consists of Procedures Designed Specifically