What it is
Subsequent disbursements testing picks payments made after the balance sheet date and asks one question about each: did the goods or services relate to the audit period and, if so, was the liability recorded at year end? It addresses cutoff and completeness of liabilities.
This workpaper records the population and coverage, then tests each item on the date of the service, the account charged and whether it was accrued. It calculates unrecorded amounts and compares them with performance materiality.
When to use it
- On every audit, shortly after year end and updated close to the report date.
- When AP and accrued expenses are low relative to history or the close was rushed.
- To support the search for unrecorded liabilities and expense cutoff conclusion.
What’s inside
- Population: disbursements after year end per the register, threshold and coverage tested
- Test grid: payee, payment, invoice and service dates, evidence examined, expense account, accrued Y / N
- Formulas flag amounts in the audit period, over the threshold and not accrued
- Unrecorded total versus performance materiality and a conclusion
Standard cited
This template follows AU-C 330 / AU-C 500. 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 330 explained, AU-C 500 explained.
Questions
How far after year end should the search go?
Far enough to cover the period where year-end liabilities are normally paid. For many entities that is until fieldwork ends or the report date, and you should update the search if the report is delayed. Consider the entity’s payment terms.
How does this differ from the search for unrecorded liabilities workpaper?
They overlap. This one is built around disbursements and the period the goods or services relate to, and reconciles coverage to the register. Use whichever suits your methodology, or both for high-risk entities.
Related templates
- Search for Unrecorded Liabilities Workpaper
- Audit Program: Accounts Payable and Accrued Liabilities
- Accrued Expenses Schedule (Excel)
Last updated 11/04/2026. All free templates.