Determine materiality of lawsuits

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Reference no: EM131780745

During the audit of the Garza’s Manufacturing Company, Pablo Escobar, CPA, has become aware of four lawsuits against the client through discussions with the client, reading corporate minutes, and reviewing correspondence files.

How do you believe Pablo Escobar should handle the new information and determine the materiality of the lawsuits and the proper disclosure needed in the financial statements?

Reference no: EM131780745

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