How would your current employer or a previous employer do if their contingent liabilities were audited?

How would your current employer or a previous employer do if their contingent liabilities were audited?

How would your current employer or a previous employer do if their contingent liabilities were audited?
Substantive responses: a minimum of 175 words: Reply to at least 2 of your classmates Be constructive and professional in your responses.
Discussion topic:1.      The final phase of an audit is addressing contingent liabilities and their relation to the audit.Discuss a review for contingent liabilities, letters from the client’s lawyers and post-balance-sheet review for subsequent events.How would your current employer or a previous employer do if their contingent liabilities were audited?Student Post2.      A contingent liability is a future liability for an outside person to the company for an amount for services that have already been rendered. For a contingent liability to be there are certain stipulations.•       1. There is a possibility of a future dated payment to an outside party or the impairment of a particular asset that is going to result from an existing condition•       2. There is no direct or foreseeable time about the amount of the future payment or impairment•       3. The outcome will be resolved by some future event or eventsWhen an auditor is looking at the contingent liabilities, there are some main areas that they are going to put focus on. A few of these are going to be any possible pending litigation involved with patient infringement or product liabilities, any income tax disputes, any product warranties, the notes receivable discounted, any guarantees of obligations of other, and if there is unused balances that are outstanding letters of credit. A proper investigation of these area are going to be do any additional tests that are necessary for presentation and disclosure, review for the contingent liabilities, review for any subsequent events, gather all the final evidence that is needed, do an evaluation of the results, issue the audit findings report, and communicate those findings with management and the committee.
3.      A contingent liability is a potential liability that may or may not become an actual liability. Whether the contingent liability becomes an actual liability depends on a future event occurring or not occurring. In accounting, some contingent liabilities and their related contingent losses are: recorded with a journal entry, are limited to a disclosure in the notes to the financial statements, not recorded or disclosed. Depending on the likelihood of the liability occurring is how a company will determine how they will record or not record the contingent liability. If there is a slight change there will be no disclosure necessary. If there is a reasonable possibility that the liability could happen then it should be recorded in the footnotes. If it is more likely than not to happen and the amount can be estimated then the contingent liability should appear in the financial statements. A letter of inquiry to the clients attorneys is to prevent oversight on any pending litigation. This letter is to include a request for pending threatened litigation, asserted or unasserted claims, information on progress of each claim listed, request to identify any unlisted or pending legal actions, and a statement making sure the attorney’s responsibility to inform management of legal matters.
https://www.accountingcoach.com/blog/contingent-liability-contingency
Answer preview to how would your current employer or a previous employer do if their contingent liabilities were audited?
APA
582 words
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How would your current employer or a previous employer do if their contingent liabilities were audited?

How would your current employer or a previous employer do if their contingent liabilities were audited?
Substantive responses: a minimum of 175 words: Reply to at least 2 of your classmates Be constructive and professional in your responses.
Discussion topic:1.      The final phase of an audit is addressing contingent liabilities and their relation to the audit.Discuss a review for contingent liabilities, letters from the client’s lawyers and post-balance-sheet review for subsequent events.How would your current employer or a previous employer do if their contingent liabilities were audited?Student Post2.      A contingent liability is a future liability for an outside person to the company for an amount for services that have already been rendered. For a contingent liability to be there are certain stipulations.•       1. There is a possibility of a future dated payment to an outside party or the impairment of a particular asset that is going to result from an existing condition•       2. There is no direct or foreseeable time about the amount of the future payment or impairment•       3. The outcome will be resolved by some future event or eventsWhen an auditor is looking at the contingent liabilities, there are some main areas that they are going to put focus on. A few of these are going to be any possible pending litigation involved with patient infringement or product liabilities, any income tax disputes, any product warranties, the notes receivable discounted, any guarantees of obligations of other, and if there is unused balances that are outstanding letters of credit. A proper investigation of these area are going to be do any additional tests that are necessary for presentation and disclosure, review for the contingent liabilities, review for any subsequent events, gather all the final evidence that is needed, do an evaluation of the results, issue the audit findings report, and communicate those findings with management and the committee.
3.      A contingent liability is a potential liability that may or may not become an actual liability. Whether the contingent liability becomes an actual liability depends on a future event occurring or not occurring. In accounting, some contingent liabilities and their related contingent losses are: recorded with a journal entry, are limited to a disclosure in the notes to the financial statements, not recorded or disclosed. Depending on the likelihood of the liability occurring is how a company will determine how they will record or not record the contingent liability. If there is a slight change there will be no disclosure necessary. If there is a reasonable possibility that the liability could happen then it should be recorded in the footnotes. If it is more likely than not to happen and the amount can be estimated then the contingent liability should appear in the financial statements. A letter of inquiry to the clients attorneys is to prevent oversight on any pending litigation. This letter is to include a request for pending threatened litigation, asserted or unasserted claims, information on progress of each claim listed, request to identify any unlisted or pending legal actions, and a statement making sure the attorney’s responsibility to inform management of legal matters.
https://www.accountingcoach.com/blog/contingent-liability-contingency
Answer preview to how would your current employer or a previous employer do if their contingent liabilities were audited?
APA
582 words
Get instant access to the full solution from Lindashelp.com by clicking the purchase button below

How would your current employer or a previous employer do if their contingent liabilities were audited?