Discuss the comparison and contrast the accumulation of audit evidence and the evaluation of the adequacy of the disclosures in the financial statements. Also, provide two examples in which adequate disclosure could depends hevaily on the accumulation of evidence and two others in which audit evidence does not normally significantly affect the adequacy of the disclosure.

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 24, Problem 13RQ

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Discuss the comparison and contrast the accumulation of audit evidence and the evaluation of the adequacy of the disclosures in the financial statements. Also, provide two examples in which adequate disclosure could depends hevaily on the accumulation of evidence and two others in which audit evidence does not normally significantly affect the adequacy of the disclosure.

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Which of the following statements is correct about the reliability of audit evidence? a.Sufficiency of evidence refers only to the quality of evidence obtained. b.Evidence obtained from one source only is more reliable than evidence obtained from multiple sources. c.Effective controls over financial reporting provides more assurance on the reliability of internally generated documents. d.Information obtained orally is the most reliable evidence.

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 24, Problem 13RQ

To determine

Discuss the comparison and contrast the accumulation of audit evidence and the evaluation of the adequacy of the disclosures in the financial statements. Also, provide two examples in which adequate disclosure could depends hevaily on the accumulation of evidence and two others in which audit evidence does not normally significantly affect the adequacy of the disclosure.

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Answer 3

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 24, Problem 13RQ

To determine

Discuss the comparison and contrast the accumulation of audit evidence and the evaluation of the adequacy of the disclosures in the financial statements. Also, provide two examples in which adequate disclosure could depends hevaily on the accumulation of evidence and two others in which audit evidence does not normally significantly affect the adequacy of the disclosure.

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Answer 4

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Definition Definition Costs that a business is responsible for paying, should a particular event potentially occur in the future. Also called a potential liability, a contingent liability is generally recorded only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly. The Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Principles (IFRS) make it mandatory for the companies to record any contingent liability taking the principles of full disclosure, materiality, and prudence into consideration.

Chapter 24, Problem 13RQ

To determine