Litigation and claims, Auditing

Assignment Help:

Litigation and claims

ISA 501 Audit Evidence - Additional Consideration for exact Items requires such auditors should carry our process to become aware of any material litigation or claims including the entity. That procedure would involve:

(i) Make suitable enquiries of management involving obtaining representations

(ii) Examine management and board minutes for indications of possible claims

(iii) Examine correspondence along with lawyers involving bills rendered

(iv) Examine legal expense account

(v) Receive a list of matters refereed t lawyers along with the company's estimates of possible liabilities

(vi) Review the client's system of recording claims involving the process for bringing them to the attention of management.

Whenever litigation or claims have been well known or wherever the auditor believes that they may exist, the auditor should seek direct contact along with the entity's lawyers.

The letter should be prepared through management and sent through the auditor. It should identify the litigation and management's assessment of the outcome, and request such the lawyer verify directly to the auditor the reasonableness of the statement and to give the auditor along with further information whether the list is incomplete. Whether the lawyer is probable to respond to a more common enquiry, after that would be better lawyers are usually unwilling to do this unless there is nothing to report.

In complex condition the auditor may require to meet the lawyer, along with the client's permission and preferably along with the client in attendance. Wherever permission to communicate along with lawyers is refused, a qualified audit opinion will usually follow.


Related Discussions:- Litigation and claims

ACL PROGRAME, I have some questions in ACL PROGRAME . IF YOU CAN HELP ME

I have some questions in ACL PROGRAME . IF YOU CAN HELP ME

Individual assignment, The following situations may or may not breach the e...

The following situations may or may not breach the ethical requirements of APES 110. You need to state whether they are or are not a breach of the ethical requirements of APES110 a

Co-operative societies and parastatals, Co-operative Societies and Parastat...

Co-operative Societies and Parastatals Co-operative Societies An audit in this case is carried out as a general audit except you should notice that the auditor is appoi

Inter-related components of internal control, Part A: What are the five...

Part A: What are the five inter-related components of internal control? Briefly discuss them. Part B: A file maintained by the Accounts Department for one of Sharp's s

Auditors procedures - disclosure and presentation, Auditors Procedures - Di...

Auditors Procedures - Disclosure and Presentation 1) Ascertain that what steps the client uses to identify suppliers, selling on terms that reserve title by enquiry of those c

Furniture, Furniture, Fixtures and Disposal of Non-Current Assets Fur...

Furniture, Fixtures and Disposal of Non-Current Assets Furniture, fixtures and fittings The only matter here to note is the depreciation of fittings and fixtures.  Since

Information in the fixed assets register, Information in the Fixed Assets R...

Information in the Fixed Assets Register The register can obtain the following information: i. Fixed asset number. ii. The cost and the date of purchase. iii. Descrip

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd