Litigation, Claims and Assessments
Free CPA AUD (Auditing & Attestation) lesson in Performing Further Procedures and Obtaining Evidence. 13 min read, ~1,943 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...
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What this lesson covers
- Content
- Example 1
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- III.E4
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