Audit Staff Essentials - Experienced Staff or New In Charge: Auditing Contingent Liabilities and Going Concern

Using a comprehensive framework

As experienced audit staff, you can expand your ability to use a comprehensive framework by exploring concepts, such as:

• Presumption of a going concern
• Fair presentation
• Necessary disclosures

Looking beyond facts and figures

As the in-charge auditor, it is important to learn ways to look beyond the current accounting for a transaction and evaluate other considerations, including:

• Future implications
• An entity's ability to continue as a going concern
• Commitments and contingencies
• An auditor's responsibility related to litigation claims assessment

Other considerations

You can also examine other considerations, such as:

• Relevant procedures
• Required documentation
• Liquidation basis of accounting

Who Will Benefit

• Experienced staff
• New in-charge auditors
• Firms that want consistent training and level setting

Key Topics

• Accounting for contingent liabilities, commitments and contingencies
• Liquidation basis of accounting
• Auditing going concern

Learning Objectives

• Apply audit objectives and assertions to the practice of auditing commitments and contingencies.
• Determine the important accounting considerations for contingent liabilities and going concern.
• Identify basic processes, controls, and audit procedures over contingent liabilities, as well as weaknesses and possible solutions.
• Identify the requirements under AU-C section 570, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern.