Audit Procedures For Contingent Liabilities

Audit Procedures For Contingent Liabilities Contingent liabilities are potential future liabilities, such as pending lawsuits or honoring product warranties, that must be recorded in a firm’s accounting records to ensure accuracy and compliance with accounting principles. Generally Accepted Accounting Principles (GAAP) categorize contingent liabilities as probable, possible, or remote. Probable contingencies are those that are … Read more