COUNTRY: USA!!

For the following liability accounts, propose a substantiveaudit procedure (either an analytical test or a test of details) totest the year end balance of the following various liabilityaccounts listed below. As an example - to audit the liabilityaccount mortgage interest payable at year-end, you would check tosee when the last interest payment was, and then based upon theloan balance and interest rate and the number of days to year-end,you could compute an interest payable amount. Alternately, youcould take the amount of mortgage interest expense for the year anddivide by 12. That should be the maximum mortgage interest payableat year end. Here are the 5 liability accounts I would like you topropose audit procedures for:

1. Sales tax payable

2. Accrued wages

3. Accrued employer match for medicare/social securitypayroll taxes

4. Accrued employee portion of payroll taxes, includingincome tax withheld.

5. Utilities payable

BE SPECIFIC and descriptive about the audit procedures youpropose.

Here is some additional information that you willneed:

Sales tax is paid monthly.

Payroll is paid every two weeks.

The last payroll paid covered the two weeks ending 12/24,and was paid on 12/31.

Payroll taxes associated with the 12/31 payroll will be paidthe first week of January.

As auditor, you have access to completed payroll records andgovernment payroll tax form filings. Please note:you CANNOT suggest a review of subsequent payment of theseliabilities.

PLEASE DO ALL, WILL GIVE A THUMBS UP! :)