The auditor should obtain a certificate from the client that all the liabilities which had accrued due till the close of the year have been taken into account and contingent liabilities, if any, have been fully disclosed. It should be verified that the liabilities have been appropriately grouped under different heads for the
purpose of disclosure in the Balance Sheet; secured and unsecured liabilities have been segregated; and against the first, nature of security and its amount have been stated.

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