What it is
The search for unrecorded liabilities tests the completeness of accounts payable and accrued liabilities. The auditor looks at payments made after year end, and invoices received but not yet paid, to find any that relate to goods or services received on or before the balance sheet date but were not recorded.
This workbook sets the threshold and the search window, lists each item examined, flags whether it relates to the audit period and whether it was recorded, and totals the unrecorded amount to carry to the summary of misstatements.
When to use it
- On every audit with significant payables or accrued expenses.
- Alongside AP confirmations or vendor statement reconciliations.
What’s inside
- Threshold, search window and sources (disbursement register, unpaid invoice file)
- Test log: payee, date paid, invoice and service dates, amount
- Formulas flagging items above threshold and items relating to the audit period
- Recorded / unrecorded check and total unrecorded liabilities
- Conclusion and link to the summary of misstatements
Standard cited
This template follows AU-C 500 / AU-C 330 (completeness). It is written in our own words, except for phrases the standard requires the document to contain, with [bracketed placeholders] for client details, amounts in USD and dates as MM/DD/YYYY. Check it against the current standard and your firm’s methodology before use. See AU-C 500 explained, AU-C 330 explained.
Questions
How long after year end should the search cover?
Up to or near the report date, and at least long enough to capture the entity’s normal payment cycle. Extend it if the entity pays slowly or the report date slips.
How is the threshold set?
Base it on performance materiality and the risk of understatement. A common approach is to test every item above the threshold and use judgment for smaller items with unusual payees or descriptions.
Related templates
- Accounts Payable Confirmation (Vendor Statement Request, AU-C 505)
- Accrued Expenses Schedule (Excel)
- Summary of Uncorrected Misstatements (AU-C 450)
Last updated 11/04/2026. All free templates.