If an auditor concludes there are contingent liabilities,then he or she must evaluate the

Question

Quizplus · Accepted Answer

When an auditor concludes there are contingent liabilities, the next step is to evaluate the likelihood and potential impact of those liabilities. This means assessing factors such as the probability of the liability occurring and the possible financial consequences if it does occur. Option A is the only choice that relates to this evaluation process. Options B, C, and D do not address the evaluation of contingent liabilities.

If an Auditor Concludes There Are Contingent Liabilities,then He or She