Question 1
Which of the following is a contingent liability with which an auditor is particularly concerned?
◦
Notes receivable discounted | Product warranties |
Yes | Yes |
◦
Notes receivable discounted | Product warranties |
No | No |
◦
Notes receivable discounted | Product warranties |
Yes | No |
◦
Notes receivable discounted | Product warranties |
No | Yes |
Question 2
Which of the following is
not a common audit procedure used to search for contingent liabilities?
◦ examine letters of credit
◦ examine payroll reports
◦ review internal revenue agent reports
◦ analyze legal expense