Identify audit procedures for uncovering contingencies

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Reference no: EM132796003

Question - A) Your audit procedures have found the following review and assess the appropriate treatment. Provide the reason for your decision.

I) landfill limited has been notified by the municipality that it must Remediate the landfill site on which chemicals have been stored in the past. Sanitary landfill limit it has hired a consulting firm to estimate the cost of remediation which has been documented at $10 million.

ii) Sanitary landfill limited has been notified by a third-party may begin legal proceedings against us, based on the situation involving Weir mental damages to a site once owned by sanitary. Based on the experience of other companies who have been subjected to this type of litigation, it is probable that sanitary will have to pay $8 million to settle the litigation. A separate aspect of litigation is still open to considerable interpretation, but it could potential he require an additional $12 million to settle.

B) Identify three useful audit procedures for uncovering contingencies?

Reference no: EM132796003

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