Pending litigation - audit process, Auditing

Pending Litigation - Audit Process

Since of the inherent uncertainty, in calculating the outcome of legal actions so this is an especially difficult area for the auditor. Several actions are possible that assist in certifying the existence however not essentially the amount of liabilities such will arise out of legal action.

These included:

a) Review of the client system for recording disputes and claims and the process for bringing this to the attention of the board.

b) Review of the managements for instructing solicitors.

c) Examination of the minutes of the board for references to and indications of probable claims.

d) Inspection of bills rendered through the solicitors.

e) Review of correspondence along with solicitors and obtaining a list of all issues referred to solicitors along with an estimate of the possible ultimate liability.

f) Written assurance in the form of a representation letter from a suitable director which he is not aware of any other matters referred to the lawyers another than those disclosed. Whether the auditor is in doubt he should receive a direct confirmation from the Company's lawyers. The request must be send by the client not through the auditor.

Posted Date: 1/28/2013 1:11:48 AM | Location : United States







Related Discussions:- Pending litigation - audit process, Assignment Help, Ask Question on Pending litigation - audit process, Get Answer, Expert's Help, Pending litigation - audit process Discussions

Write discussion on Pending litigation - audit process
Your posts are moderated
Related Questions
Deferred Taxation - Audit Process Deferred Taxation results from the fact such the income tax department require different rules for calculating profits from those used throug

Co-operative Societies An audit in this case is carried out as a normal audit except you should note that the auditor is appointed by the Commissioner of Co-operatives and alth

An auditor is conducting an audit of the financial statements of a wholesale cosmetics distributor with an inventory consisting of thousands of individual items. The distributor ke

Explain The Difference Between Internal Audit And External Audit?        Ans) The internal audit is performed to help the management. The weakness of the management is disclosed

what is the role of audit trainee in managing the discrete assignment?

Audit Sampling ISA 530 Audit Sampling and Other Selective Testing Procedures states Audit sampling is the application of a compliance or substantive procedure to less than 100%

Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), after noting that there is a proposal to limit Auditor liability is very excited and has announced that th

Objectivity - External Auditor Report Many accounting figures are subjective and contain substantial terms of subjective judgment.  Many more business transactions have financ

Discovery of unlawful acts When an auditor discovers unlawful acts, usually he is not expected to disclose to the police or other authorities unless: The client authorise

I need help with my homework for medical billing and coding can you help?