You are the audit supervisor of Cook & Cook and you are preparing for the final audit of Diamond Ltd (Diamond), a trading company, for the year ended 31 December 2021. Diamonds profit before tax per the draft financial statements for the year ended 31 December 2021 was 50 million and total assets as at that date totalled 800 million. Diamond sells specialised medical equipment such as CT scans, monitors, ventilators and infusion pumps to hospitals, in both the public and private sectors, across the United Kingdom. Diamonds head office and warehouse are based in Leeds and all supplies to customers are made from this location. The following matters came up in discussions between your audit team and Diamonds finance director in the course of conducting the audit fieldwork:

Contingent liabilities

There are ongoing regulatory investigations and litigation relating to prior periods relating to alleged unfair trading practices, but the investigations had gone on for the past one year without a resolution. Diamond has also received notification from a major health facility that they intend to sue for damages for injury caused to a patient from a faulty ventilator sold to them by Diamond. Management is of the view that the likely outcome and potential impact on Diamond of any such litigation is subject to high uncertainties. In addition, Diamond is of the view that there are substantial factual and legal defences to these claims and the company intends to contest all the claims vigorously. Accordingly, managements assessment is that the chance of any potential liability arising from the two circumstances above, is remote and therefore no reference should be made of them in the financial statements. Management has informed the auditor that no other circumstances exist which might give rise to potential contingent liabilities.

Describe FIVE substantive audit procedures you will perform in relation to the entitys contingent liabilities.