Contingencies are considered by the auditor in relation to the ASC 450 (SFAS No.5)criteria to determine whether material contingencies exist with the client and,if so,that they are properly accrued or disclosed.

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Contingencies are indeed considered by the auditor in relation to the ASC 450 (SFAS No.5) criteria to determine whether material contingencies exist with the client and, if so, that they are properly accrued or disclosed. This is done to ensure that the client's financial statements provide a fair and accurate depiction of the company's financial position and potential liabilities.

Contingencies Are Considered by the Auditor in Relation to the ASC