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

Learning Objectives

• To analyze and describe accounting and auditing requirements for commitments and contingencies.
• To discuss litigation, claims, and assessment special considerations.
• To explain the auditor's responsibility for evaluating the appropriateness of going concerning accounting and disclosure.
• To analyze management's policies and procedures for identifying, evaluating, and accounting for litigation, claims, and assessment.

Course Description

The auditor’s responsibilities are to obtain sufficient appropriate audit evidence regarding, and conclude on, the appropriateness of management’s use of the going concern basis of accounting in the preparation of the financial statements, and to conclude, based on the audit evidence obtained, whether a material uncertainty exists about the entity’s ability to continue as a going concern.

Auditors need to take certain steps to ascertain whether material uncertainty disclosures with ongoing concerns in the financial statements are adequate, and how these disclosures will then impact the audit report. Financial statements may contain significant uncertainties requiring special audit consideration for evaluating proper accounting and financial reporting treatment.

This online CPE webinar by Jennifer Louis provides tips and techniques for obtaining sufficient appropriate audit evidence to support conclusions related to contingencies and going concern uncertainty.

Major topics covered in this CPE Auditing webinar are:

• Overview of contingencies and related disclosures
• Identifying and determining proper accounting treatment for litigation, claims, and assessments
• Evaluating the sufficiency of the 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
• Auditing management assumptions in making the going concern evaluation
• Proper application of the liquidation basis of accounting

Here is the link to your interests: Accounting & Auditing CPE Courses | CPE Courses for Certified Internal Auditors

Overview

• Contingency Defined

  3 mins
• Substantive Audit procedures to test reasonableness of contingencies

  14 mins
• Disclosure of obligations under guarantee

  27 mins
• Auditing Litigation, Claims, and Assessments

  47 mins
• Factors that increase environmental remediation liability risk

  63 mins
• Substantial doubt exists and not alleviated

  89 mins