Contingent liabilities The auditor will discuss contingencies with the appropriate executives and management of the company. Identify at least five sources of evidence to corroborate management's representations regarding contingencies
Corroborating evidence of contingent liabilities includes:
? letter of audit inquiry
? correspondence and invoices from lawyers
? corporate minutes
? contracts
? correspondence with governmental agencies
? bank confirmations
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Pro forma financial statements are prepared at the end of the year and are used to evaluate the performance of managers.
Answer the following statement true (T) or false (F)
_____ are inventories displayed for sale to customers
a. Back stock b. Floor stock c. Intangible assets d. Tangible assets
Which of the following statements is true of the factors to be considered by a businessperson before appealing a decision?
A) Appellate courts are usually composed of a grand jury. B) A favorable ruling in an appellate court has precedential value. C) Attorneys are less expensive to hire for an appeal than an initial trial. D) The appeal should not allege that a prejudicial error occurred during the trial.
Which of the following terms refers to a contract in which the owner agrees to provide the ship at a named port at a specified time and to carry the goods to the contract destination?
A. voyage charterparty B. no arrival, no sale contract C. maritime lien D. claused bill of lading