How, as an auditor, will you satisfy yourself that all liabilities for expenses have been provided for in the balance sheet?

Answer.
 Obtain a complete list of outstanding liabilities from a responsible official.
 Scrutinize the list carefully to make sure that expenses for the entire year have been accounted for.

 Scrutinize list of old advances outstanding on the asset side to make sure that these do not represent expenses paid but not properly accounted for when bills were received subsequently.
 Check the minutes book to locate any liability undertaken which have not been provided for.
 Compare the list of outstanding liabilities with the previous year.

Obtain a certificate from a competent official that all liabilities for expenses have been provided.