Assets & GRAP
Accruals and Unrecorded Liabilities
Year-end accrual completeness testing for liabilities incurred but not yet captured in the ledger.
Why accrual completeness is tested
Under the accrual basis of GRAP, liabilities incurred before year-end must be recognised even if no invoice has yet been processed; omitting them understates liabilities and overstates the surplus. Unrecorded liabilities are a classic completeness risk that the AGSA tests aggressively, and material understatement can qualify an audit opinion. AuditPro Core runs completeness testing across post-year-end payments and open commitments to surface accruals that never reached the ledger.
The Numbers
AuditPro Core renders this view from your tenant's live, tamper-evident records. The figures below are illustrative sample data.
Accruals Raised
R 142 m
at year-end
Unrecorded Found
R 27.4 m
post year-end test
Completeness
83.8%
▼ below 95% target
Adjusting Entries
16
Unrecorded liabilities by category (R m)
Post year-end payment matching
| Category | Unrecorded (R m) | Relates To | Status |
|---|---|---|---|
| Professional fees | 9.1 | Prior year | Adjusted |
| Bulk services | 7.8 | Prior year | Adjusted |
| Legal services | 5.1 | Prior year | Under review |
Figures shown are illustrative sample data for demonstration. AuditPro Core renders these views from your own tenant's live, tamper-evident records.
Accrual basis demands completeness
GRAP recognises expenses when the obligation arises, not when it is paid. A liability incurred in the audit year belongs in that year's financials regardless of invoice timing.
Subsequent payments reveal the gap
Payments made shortly after year-end for goods or services received before it are the strongest evidence of an unrecorded liability. Cut-off testing on this window finds the omissions.
Understatement flatters the result
Missing accruals understate liabilities and inflate the reported surplus, distorting the financial position. This makes completeness a higher audit risk than overstatement of liabilities.
How AuditPro Core Bridges the Gap
- Cut-off testing: post-year-end payments are scanned for services rendered before the reporting date.
- Commitment matching: open purchase orders are tested against recorded accruals for gaps.
- Exception register: suspected unrecorded liabilities are queued for confirmation and posting.
- Audit-ready evidence: each identified accrual links to the supporting payment or order document.
Key Takeaways
- GRAP requires liabilities to be recognised when incurred, not when invoiced.
- Post-year-end payments are the best lead to unrecorded liabilities.
- Missing accruals understate liabilities and overstate the surplus.
- Completeness is the dominant audit risk for accruals and provisions.
See This on Your Own Data
AuditPro Core renders this dashboard from your tenant's live, tamper-evident records — every figure traceable to source.