Explain what type of audit report is required when the entity has a lawsuit pending...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Explain what type of audit report is required when the entity has a lawsuit pending against it and it is probable that the entity will lose the suit. Management has not accrued the best estimate of the loss, even though it is probable and can be reasonably estimated. Information about the lawsuit is provided in the notes to the financial statements. It is not expected that this lawsuit will have a significant effect on the entity's ability to continue as a going concern, the effect of this accrual is material, but not pervasive?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
