Discuss Three Audit Procedures Commonly Used to Search for Contingent

question 51

Essay

Discuss three audit procedures commonly used to search for contingent liabilities.

---

Definitions:

Bond

A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, which includes the terms for interest payments and the return of principal at maturity.

Overspend

The act of spending more money than is available or budgeted.

Hoard

A collection of items, often valuable, that is hidden or stored away by an individual or group.

Paralyzed

The loss of the ability to move (and sometimes to feel anything) in part or most of the body, typically as a result of illness, poison, or injury.