In what document would the following statement most likely appear. It is our opinion that thepossible liability to the company from this proceeding is nominal in amount.Lawyer's response to audit inquiry letter.Audit committees communication to the auditor.Auditor's engagement letter.Audit inquiry to legal counsel.

The methods and procedures used by the auditor to assess the quality of their clients'client's…

Answered: In what document would the following…

In what document would the following statement most likely appear. It is our opinion that the possible liability to the company from this proceeding is nominal in amount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

In what document would the following statement most likely appear. It is our opinion that the
possible liability to the company from this proceeding is nominal in amount.
Lawyer's response to audit inquiry letter.
Audit committees communication to the auditor.
Auditor's engagement letter.
Audit inquiry to legal counsel.

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