Due to the unique nature of disclosures related to contingent liabilities and subsequent events, auditors often assess the risk as high that all required information may not be completely disclosed in the footnotes.

Question

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Contingent liabilities and subsequent events are often complex and require careful evaluation by auditors. Due to their unique nature, there is a high risk that all necessary information may not be disclosed in the footnotes. Therefore, auditors must exercise caution when evaluating these disclosures to ensure that they are adequate and complete.

Due to the Unique Nature of Disclosures Related to Contingent