FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W2993999005> ?p ?o ?g. }

• W2993999005 startingPage "61" @default.
• W2993999005 abstract "Auditors must make inquiries of clients' lawyers to help them decide if the clients' financial statements should reflect possible future litigation losses. The usefulness of the lawyers' responses as audit evidence can be limited. Not understanding the limitations of lawyers' letters may lead auditors to violate professional standards unwittingly. When auditors receive lawyers' letters saying litigation losses are neither probable nor reasonably possible, is it safe to conclude financial statement disclosure is not required under accounting standards? Will a standard unqualified opinion meet audit requirements? These questions are difficult to answer because lawyers' interpretations of their responsibilities in replying to auditors are different from auditors' expectations. Lawyers are reluctant to provide CPAs with estimates of the likelihood and corresponding dollar amounts of losses; thus, any information they provide must be evaluated carefully before it is used. This article discusses the accounting, auditing and legal issues related to reporting litigation loss contingencies; highlights differences in lawyer and CPA responsibilities that can lead to problems; and suggests procedures to overcome these difficulties. ACCOUNTING AND AUDITING REQUIREMENTS Proper accounting and auditing for litigation loss contingencies present numerous practice problems. The accounting and auditing standards for these contingencies--which result from litigation, claims, assessments and unasserted claims against a client--are general and require the exercise of considerable professional judgment. The primary accounting requirements for litigation loss contingencies are outlined in Financial Accounting Standards Board Statement no. 5, Accounting for Contingencies, and FASB Interpretation no. 14, Reasonable Estimation of the Amount of a Loss. The auditing requirements are included in American Institute of CPAs Statement on Auditing Standards no. 12, Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments, and SAS no. 58, Reports on Audited Financial Statements. Exhibit 1, page 63, summarizes the accounting and auditing reporting requirements. Both the financial statement treatment and the impact on the audit report are affected by whether the likelihood of loss is remote, reasonably possible or probable. EXHIBIT 1 Reporting on uncertainties Likelihood of occurrence of event or events Remote (slight chance) Financial statement treatment No disclosure is necessary (unless generally accepted accounting principles require one in a specified circumstance). Effect on audit report No explanatory paragraph is necessary. Likelihood of occurrence of event or events Reasonably possible (more than remote, but less than likely) Financial statement treatment Note disclosure is necessary. Effect on audit report Consider the need for an explanatory paragraph. The auditor is more likely to add an explanatory paragraph as the amount of reasonably possible loss becomes larger and/or the likelihood of occurrence of a material loss increases. Likelihood of occurrence of event or events Probable (likely to occur) Financial statement treatment a. Amount is capable of reasonable estimation--adjust accounts. b. Amount is not capable of reasonable estimation--note disclosure is necessary. Effect on audit report No explanatory paragraph is necessary. Explanatory paragraph is required. SAS no. 12, which deals specifically with lawyers' letters, says auditors should obtain evidential matter on litigation by determining a. The existence of a condition, situation or set of circumstances that indicates uncertainty as to whether a possible loss to an entity could arise from litigation. b. The period in which the underlying cause for legal action occurred. …" @default.
• W2993999005 created "2019-12-13" @default.
• W2993999005 creator A5008617868 @default.
• W2993999005 creator A5041530486 @default.
• W2993999005 date "1995-02-01" @default.
• W2993999005 modified "2023-09-27" @default.
• W2993999005 title "Limitations of Lawyers' Letters: Lawyers and Auditors Have Different Responsibilities in Litigation Reporting" @default.
• W2993999005 hasPublicationYear "1995" @default.
• W2993999005 type Work @default.
• W2993999005 sameAs 2993999005 @default.
• W2993999005 citedByCount "0" @default.
• W2993999005 crossrefType "journal-article" @default.
• W2993999005 hasAuthorship W2993999005A5008617868 @default.
• W2993999005 hasAuthorship W2993999005A5041530486 @default.
• W2993999005 hasConcept C121955636 @default.
• W2993999005 hasConcept C128769094 @default.
• W2993999005 hasConcept C144133560 @default.
• W2993999005 hasConcept C162118730 @default.
• W2993999005 hasConcept C163867264 @default.
• W2993999005 hasConcept C199521495 @default.
• W2993999005 hasConcept C2781027943 @default.
• W2993999005 hasConcept C544937707 @default.
• W2993999005 hasConceptScore W2993999005C121955636 @default.
• W2993999005 hasConceptScore W2993999005C128769094 @default.
• W2993999005 hasConceptScore W2993999005C144133560 @default.
• W2993999005 hasConceptScore W2993999005C162118730 @default.
• W2993999005 hasConceptScore W2993999005C163867264 @default.
• W2993999005 hasConceptScore W2993999005C199521495 @default.
• W2993999005 hasConceptScore W2993999005C2781027943 @default.
• W2993999005 hasConceptScore W2993999005C544937707 @default.
• W2993999005 hasIssue "2" @default.
• W2993999005 hasLocation W29939990051 @default.
• W2993999005 hasOpenAccess W2993999005 @default.
• W2993999005 hasPrimaryLocation W29939990051 @default.
• W2993999005 hasRelatedWork W119159919 @default.
• W2993999005 hasRelatedWork W13520593 @default.
• W2993999005 hasRelatedWork W1512155673 @default.
• W2993999005 hasRelatedWork W1513895778 @default.
• W2993999005 hasRelatedWork W1575279224 @default.
• W2993999005 hasRelatedWork W168435294 @default.
• W2993999005 hasRelatedWork W2032108021 @default.
• W2993999005 hasRelatedWork W217289077 @default.
• W2993999005 hasRelatedWork W2173704278 @default.
• W2993999005 hasRelatedWork W2325010538 @default.
• W2993999005 hasRelatedWork W261505353 @default.
• W2993999005 hasRelatedWork W287335697 @default.
• W2993999005 hasRelatedWork W2906189258 @default.
• W2993999005 hasRelatedWork W2992745993 @default.
• W2993999005 hasRelatedWork W302794591 @default.
• W2993999005 hasRelatedWork W3121546338 @default.
• W2993999005 hasRelatedWork W35637902 @default.
• W2993999005 hasRelatedWork W173721252 @default.
• W2993999005 hasRelatedWork W2549698443 @default.
• W2993999005 hasRelatedWork W3125825868 @default.
• W2993999005 hasVolume "179" @default.
• W2993999005 isParatext "false" @default.
• W2993999005 isRetracted "false" @default.
• W2993999005 magId "2993999005" @default.
• W2993999005 workType "article" @default.