Contingencies Define What a Contingency Is,describe the Auditor's Main Concerns

question 44

Essay

Contingencies Define what a contingency is,describe the auditor's main concerns about them,and indicate how contingencies should be dealt with by management and the auditor.Besides litigation,claims,and assessments,what are some other types of contingencies?

---

Definitions:

Quantity

The volume of a physical or non-physical item or service.

Economies Of Scale

Economies of scale are cost advantages reaped by companies when production becomes efficient, leading to a reduction in the per-unit cost as the scale of operations increases.

Fixed Cost

A cost that does not change with an increase or decrease in the number of goods or services produced or sold.

Plant

A living organism of the kind exemplified by trees, shrubs, herbs, grasses, ferns, and mosses, typically growing in a permanent site, absorbing water and inorganic substances through its roots, and synthesizing nutrients in its leaves by photosynthesis using the green pigment chlorophyll.