Threatened litigation is an example of a contingent liability that must be considered in the concluding stages of the audit.

Question

Quizplus · Accepted Answer

This statement is true. Contingent liabilities such as threatened litigation are items that must be considered by auditors in the concluding stages of the audit, as they could potentially have a material impact on the financial statements of the company being audited.

Threatened Litigation Is an Example of a Contingent Liability That