ACCT 444 Week 7 DQ 2

ACCT 444 Week 7 DQ 2

Class, let’s discuss the final work needed to complete the audit. In completing the audit, the auditor reviews potential contingent liabilities. What is a contingent liability? Describe the three ranges of loss contingencies outlined in SFAS No. 5, including a brief summary of the accounting and disclosure requirements. Later in the week, we will take a look at Problem 24-27.