Businesses often have litigation against them that the auditor has to identify and adequately disclose. List...

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)

Expert Solution

Following are the financial statement assertions and audit procedures to be adopted to address them :-

Financial statement assertion	audit procedure (s)
Existence	inquire management about any litigations is there and their possible outcome or result Obtain confirmation from legal counsel about any litigation
Completeness	check correspondence with the legal department , if any to obtain complete information Vouch legal expenses to ensure complete list of legal liabilities are shown
Rights and obligation	inquire management about rights and obligations of each party Consult from legal counsel regarding rights and obligations of concerned parties
Valuation	examine legal expenses voucher and payment slip Consult legal counsel regarding expected amount of legal liability Review any court ruling in this regard
Presentation & disclosure	inquire management whether all the legal liabilities have been shown Consult legal advisor or examine the relevant law and related disclosures

ekkarill92 answered 1 year ago

It has been reported that because providers fear litigation, they often order testing on clients that...

It has been reported that because providers fear litigation, they often order testing on clients that is not actually necessary just to be certain that no “stone is left unturned.” Discuss the implications of this practice for the provider, the client, and health care in general.

Identify and evaluate a combination of businesses that have achieved synergy and another that has failed...

Identify and evaluate a combination of businesses that have achieved synergy and another that has failed to do so.

a) List the three categories of contingent liabilities. Also, what does the company have to disclose...

a) List the three categories of contingent liabilities. Also, what does the company have to disclose or record for each category? b) When issuing bonds, if the market interest rate is greater than the stated interest rate, will the bonds issue at a premium or a discount and why? Explain your reasoning for your answer.

Businesses are often accused of engaging in predatory pricing. However, competition regulators often have difficulties separating...

Businesses are often accused of engaging in predatory pricing. However, competition regulators often have difficulties separating predatory pricing from vigorous competition. The Areeda–Turner test for predatory pricing states that if a firm sets its price above its marginal cost then it is probably not predatory pricing, but if it sets its price below marginal cost then it is probably predatory. Remembering our analysis of profit-maximising firms from chapters 14 and 15, explain why pricing below marginal cost might be viewed...

Identify and explain five (5) principle techniques for obtaining evidence available to the auditor? List and...

Identify and explain five (5) principle techniques for obtaining evidence available to the auditor? List and briefly explain three (3) objectives when testing transactions. List and briefly explain three (3) objectives when testing balances. Explain the differences between walk- through test, tracing and vouching.

You work as an internal auditor for a manufacturer. Your employer has a strict policy against...

You work as an internal auditor for a manufacturer. Your employer has a strict policy against internal auditors engaging in romantic relationships with company employees. All employees frequently are warned that they will be fired if they violate this rule. Despite this policy, you secretly have been dating a manager in the company’s information systems department. You and this manager always receive excellent performance reviews because you both are talented, experienced employees. When a company executive began asking questions about...

Reasons against FDI inflow: List and explain four major reasons that opponents often use to limit...

Reasons against FDI inflow: List and explain four major reasons that opponents often use to limit expansion of FDI/MNCs into host countries around the world. List and explain four major reasons that opponents often use to limit outflow of FDI/MNCs from a home country. Comparing costs and benefits of FDI to a home and a host country, which of these countries benefit the most? The home or host country? Explain why.

LIST the habits that hinder critical thinking (you may simply list them). IDENTIFY the six important...

LIST the habits that hinder critical thinking (you may simply list them). IDENTIFY the six important distinctions in critical thinking (you may simply list them). COMPOSE a brief strategy for critical reading. SUMMARIZE a brief strategy for critical listening. CREATE a brief strategy for critical viewing.

identify some businesses where sales have been adversely affected by substitute products. Why has this occurres?

Businesses have several costs and one among them is development cost. They are material cost for...

Businesses have several costs and one among them is development cost. They are material cost for companies which are either expensed or capitalised as an asset. Required: Discuss the conceptual issues involved and the definition of an asset that may be applied in determining whether development expenditure should be treated as an expense or an asset.

Question