In the audit of the James Mobley Company, you are concerned about the possibility of contingent liabilities resulting from income tax disputes Discuss the procedures you could use for an extensive investigation in this area ...

In the audit of the James Mobley Company, you are concerned about the possibility of contingent liabilities

Question:

In the audit of the James Mobley Company, you are concerned about the possibility of resulting from income tax disputes. Discuss the procedures you could use for an extensive investigation in this area.

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...