24-24 Elizabeth Johnson, CPA, has completed the audit of notes payable and other liabilities for Valley River Electrical Serv ices and now plans to audit contingent liabilities and commitments.

a. Distinguish between contingent liabilities and commitments and explain why both are important in an audit.

b. Identify three useful audit procedures for uncovering contingent liabilities that Johnson will likely perform in the normal conduct of the audit, even if she had no responsibility for uncovering contingencies.

c. Identify three other procedures Johnson is likely to perform specifically for the purpose of identifying undisclosed contingencies to help her obtain evidence about the presentation audit objective.

d. Identify three useful audit procedures for uncovering commitments that Johnson will likely perform as part of the audit in other accounts.