During their initial audit of Price Industries, LLC , the auditors, Jones CPAs would like to determine
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Question:
During their initial audit of Price Industries, LLC the auditors, Jones CPAs would like to determine if there are any loss contingencies that the client may need to disclose in the financial statements. Which of the following are methods the auditors could use to determine if any loss contingencies exist? Select all that apply.
The auditors should consider contacting key customers and vendors of the client to determine if the client has been subject to any prior lawsuits.
The auditors should consider reviewing the minutes of board of directors meetings for any evidence of loss contingencies.
The auditors should consider contacting the clients legal counsel and formally
requesting notification of any loss contingencies.
The auditors should request written assurances andor confirmations from
management that loss contingencies do not exist. This can be added to the current
years audit file and used as evidence.
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