Before you sign off on the audit, you need to determine that sufficient audit work has been done to determine whether contingent liabilities and subsequent events have been recorded in accordance with the applicable financial reporting framework at year end a Describe the audit evidence the partner...

a The auditor would expect to find copies of the attorney letters received from the attorneys The pa ...

Before you sign off on the audit, you need to determine that sufficient audit work has been

Question:

Before you sign off on the audit, you need to determine that sufficient audit work has been done to determine whether and subsequent events have been recorded in accordance with the applicable financial reporting framework at year-end.
a. Describe the audit evidence the partner would expect to find in the work papers to determine whether this information has been correctly recorded and disclosed in the financial statements.
b. What alternatives are available to the partner if the audit evidence indicates that disclosure is inadequate for these items?

Contingent liabilities
A contingent liability is an obligation of business related to an uncertain future event. The business must record it in its financial statements if the amount can be reliably estimated and it is probable that amount will be paid by business as a...