When the proper disclosure in the financial statements of material contingencies is through footnotes,the footnote should describe the nature of the contingency to the extent it is known and
A)the auditor's opinion as to the expected outcome.
B)the opinion of legal counsel or management as to the expected outcome.
C)an estimate of the amount or a statement that the amount cannot be estimated.
D)the steps the client has taken to ensure that it doesn't recur.

Question

Quizplus · Accepted Answer

When the proper disclosure in the financial statements of material contingencies is through footnotes, the footnote should describe the nature of the contingency to the extent it is known and provide an estimate of the amount or a statement that the amount cannot be estimated. The auditor's opinion, legal counsel or management's opinion, and steps taken by the client to ensure it doesn't recur are not required in such disclosures.

When the Proper Disclosure in the Financial Statements of Material