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Substantive procedures for contingencies.

The following are substantive procedures for auditing contingencies

  • Follow up contingencies reported in last year.
  • Discuss with management (also obtain written representation if necessary)
  • Review minutes of board of directors meetings
  • Review client’s correspondence with lawyers and invoices for legal services
  • Send confirmation to external legal counsel (listing specific areas where contingencies may exist)
  • Check status subsequent to reporting period
  • Consider whether expert advice may be required from outside source other than lawyers
  • Review business press and trade journals for possibility of industry wide contingencies

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