Litigation, Claims and Assessments

Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 12 min read, ~1,858 words.

AU-C 501 requires procedures to identify pending or threatened litigation, claims, and assessments that may give rise to a risk of material misstatement. Five procedures: inquire of management, send an attorney letter, review TCWG minutes, review legal expense, examine attorney correspondence. The attorney letter is the principal corroborating evidence, management...

What this lesson covers

• Content
• Example 1
• Common Mistakes
• Key Takeaways
• Exam Shortcuts

Learning objectives

• III.E4

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