Which of the following scenarios regarding a lawsuit filed against a client by a third party would qualify as a "contingent liability"?
A) A lawsuit has been filed but not yet resolved.
B) A lawsuit was filed and concluded with the client winning.
C) A lawsuit was filed and concluded with a third party winning an award of $100 000,but the client hasn't paid yet.
D) A lawsuit was filed and concluded with a third party winning an award of $100 000,which the client paid after the balance sheet date but before the statements were issued.
Correct Answer:
Verified
Q7: If a potential loss on a contingent
Q8: Which of the following procedures might be
Q9: When the proper disclosure in the financial
Q10: State the three conditions required for a
Q11: The auditor's responsibility with regards to contingent
Q13: Which of the following substantive tests would
Q14: If the amount of a probable loss
Q15: List the assertions and audit objectives the
Q16: What audit approach is used to search
Q17: Which of the following is a required
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents