Nature and events of contingency

Assignment Help Auditing

Reference no: EM1351109

You are auditing Green Corporation for the calendar year 2010. Among other items related to the audit; Green Corporation was being sued for personal injury resulting from the malfunction of one of their products. The lawsuit was initiated by Sue Ewe in September, 2010. Management and the company's outside legal counsel estimated the loss from the suit to be approximately $250,000. This amount is accrued and properly disclosed in the footnotes of the financial statements. You have no reason to believe that the estimate is inaccurate. You completed your audit and dated your report March2, 2011. On March 20, 2011, you read in a national business periodical that the jury in trial awarded Sue Ewe $1.5 million

Required:

Discuss the nature of these events and what responsibility, if any, you have regarding the news of March 20, 2011

Reference no: EM1351109

Questions Cloud

What is the average speed on the return trip : A child's toy consists of a piece of plastic attached to a spring. The spring is compressed against the floor a distance of 1.2 cm, and the toy is released. If the spring constant is 103 N/m, what is the magnitude of the spring force acting on the..

Cognitive development theory of your choice : Using the cognitive development theory of your choice, compare the differences in photographs and descriptions between children in the youngest group and the older children. Why are their perceptions of what they saw so different from each other?

Explain what we are really seeking here is to think about : Explain What we are really seeking here is to think about the decision making process at CanGo.

What is the potential energy of the barbell : What is the least radius of the circular path? (b) At this radius, what is the force causing the centripetal acceleration of the pilot.

Nature and events of contingency : You are auditing Green Corporation for the calendar year 2010. Among other items related to the audit; Green Corporation was being sued for personal injury resulting from the malfunction of one of their products. Discuss the nature of these events..

Important characteristics of leadership : Suppose the contention that excessive optimism and overconfidence are important characteristics of leadership. Might these traits help managers initiate & complete daunting projects that they would otherwise reject or abandon?

Type of power source-current or future profession : If you had to choose one type of power source, as a leader in your current or future profession, which would you choose, and why?

Explain and identify an organization that appears : Explain and Identify an organization that appears to have a low commitment to sustainability. What convinces you that the organization is not committed to sustainability?

Primary cause of enron scandal : What do you see as the primary cause of the auditing problems that led to the Enron scandal? Who do you believe carries the moral responsibility for those failures? Why?

User Account

All Pages