How do you audit completeness of the accruals?

To audit the completeness of accruals, begin by reviewing the company’s policies and procedures for identifying and recording accrued liabilities. Analyze supporting documentation, such as invoices, contracts, and correspondence, to ensure all expenses incurred during the period are recognized. Additionally, perform a detailed review of subsequent cash disbursements for any unrecorded liabilities and compare the total accruals against historical trends and industry benchmarks. Finally, conduct inquiries with management and relevant personnel to identify any potential omissions.