Contingent liabilities often are one of the most serious issues for an auditor to audit because a single contingent liability can be highly material. Further, clients are hesitant to establish accruals or make related disclosures about contingent liabilities. Thus, assessing attorney confirmations and determining whether to classify items as probable, reasonably possible, or remote is an important activity for the auditor. Discuss the difference between these issues, including the types of evidence that might lead the auditor to classify a contingency under each classification.