Auditing Contingencies and Going Concern Uncertainty – Testing for Completeness and Proper Disclosure

Financial statements may contain significant uncertainties requiring special audit consideration for evaluating proper accounting and financial reporting treatment. This module provides tips and techniques for obtaining sufficient appropriate audit evidence to support conclusions related to contingencies and going concern uncertainty.

Major Topics:

• Overview of contingencies and related disclosures
• Identifying and determining proper accounting treatment for litigation, claims, and assessments
• Evaluating the sufficiency of attorney’s letter responses for audit evidence
• Evaluating substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time
• Auditing managements assumptions in making the going concern evaluation
• Proper application of the liquidation basis of accounting