Financial statements may contain significant uncertainties requiring special audit consideration for evaluating proper accounting and financial reporting treatment. This module provides tips and techniques for obtaining sufficient appropriate audit evidence to support conclusions related to contingencies and going concern uncertainty.
Major Topics:
- Overview of contingencies and related disclosures
- Identifying and determining proper accounting treatment for litigation, claims, and assessments
- Evaluating the sufficiency of attorney’s letter responses for audit evidence
- Evaluating substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time
- Auditing managements assumptions in making the going concern evaluation
- Proper application of the liquidation basis of accounting
Prerequisites
Prerequisite: Experience on complex audit engagements.
Designed For: Accountants responsible for auditing contingencies and going concern uncertainties.
Learning Objective
- Discover and describe accounting and auditing requirements for commitments and contingencies.
- Identify and discuss litigation, claims and assessment special considerations.
- Explore and explain the auditor’s responsibility for evaluating the appropriateness of going concern accounting and disclosure.
Last updated/reviewed: March 12, 2024
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Jennifer Louis
CPA, President of Emergent Solutions Group LLC
INTRODUCTION AND OVERVIEW
- Learning Objectives for Auditing Contingencies and Going Concern Uncertainty 1:04
- Introduction to Contingencies 14:55
- Loss Contingency Accounting 12:39
- Unasserted Loss Contingencies 8:07
- Litigation, Claims and Assessments 18:02
- Subsequent Period Losses 10:24
- Going Concern-Management's Responsibility 10:58
- Going Concern-Auditor's Responsibility 10:46
- Impacts on Audit and Attest Reports 8:15
- Liquidation Basis of Accounting 5:26
CONTINUOUS PLAY
SUPPORTING MATERIAL
- Slides: Auditing Contingencies and Going Concern Uncertainty - Testing for Completeness and Proper Disclosure PDF
- Auditing Contingencies and Going Concern Uncertainty - Testing for Completeness and Proper Disclosure Glossary/ Index PDF
REVIEW AND TEST
- REVIEW QUESTIONS quiz
- FINAL EXAM exam
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