Final answer:
Auditors would analyze the balance sheet to find unrecorded long-term liabilities, but might also need to review other documentation due to issues like asset-liability time mismatch.
Step-by-step explanation:
To identify unrecorded long-term liabilities, auditors would most likely analyze a company's balance sheet, which provides a snapshot of a company's financial condition at a single point in time by enumerating its assets and liabilities. However, not all liabilities may be apparent on the balance sheet. Auditors may need to review additional documentation, such as loan agreements or minutes from board meetings, where discussions of acquiring long-term debt might have occurred. An asset-liability time mismatch, where a bank's liabilities can be withdrawn in the short term while its assets are repaid in the long term, can contribute to difficulties in identifying all liabilities, particularly when new loans or changes in interest rates affect a bank's capital and solvency.