Audit procedures Businesses often have litigation against them that the auditor has to identify and adequately disclose. List the financial assertions that apply to Contingencies. For each assertion indicate two or three audit procedures that would address that assertion. Organize you answer as follows: Financial statement assertion Audit procedure(s)
Financial statement assertion Audit procedure(s)
Existence Inquiry of management
Send confirmation request to legal counsel
Completeness Inquiry of management
Vouch legal expenses
Review nature of legal services to determine if a liability might exist
Rights and Obligations Inquiry of management
Confirmation from legal counsel
Examine payments related to in-progress litigation
Valuation and Allocation Inquiry of management
Confirmation of legal counsel
Review court rulings
Presentation and Disclosure Inquiry of management
Confirmation of legal counsel
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Fill in the blank(s) with the appropriate word(s).