ACCRUALS. Performe analytic review of accruals figure this year and compare it with last years balance and also to current years balance to confirm the reasonableness of the figure in the finacial statemnt. 2. Inspect sample of the invoices received b4 and aftrer year ends. To ensure invoices received before year end but relate it to goods in the year are included in the years trade payable balance & moreover the invoices received after year end which relates to goods in the year are included in theyear accruals balance. 3. Fora sample of accruals from the accruals listing match back to earlier supporting documents such as invoice and payment records. 4. Review the cash payment after the year end to review any accruals omitted. PROVISIONS OF LEGAL ACTIONS. 1. Discuss with thedirectors how they arrived with the estimate. To ensure it is reasoble 2. Inspect the correspondance relating to the provision for legal action to obtain further evidence to support therecognition of provision in tge finacial statement. 3. Inspect the calculation arrived in the provision balance to ensure accuracy. 4. Discuss witg the legal advisor of tge company on the provison of tgeir estaimate and their probablity.. 5. Review tge board minute of the provision to confirm the recognition of the provision.Provisions Provisins should be recognised as a liability in the finacial 1. Present obligation which arises from past events. 2. It is more reliable estimate can be made. 3. A probable transfer of economic benefit can be made to settle the obligation. Contogient liability should be recoginised in finacial statement but should be disclosed a notes if itis a mere possible that a transfer if economic benefit will be made and if noreliable estimate can be made. Upon disclosure ab description of the Contigent liability shkuld be made, an estimate of the finacial effect, the possibility of any reimbursement.