You are an audit engagement manager of a public listed client of AB co. The audit senior has informed you that they have completed significant audit procedures for the final audit of this client. However, after your review of the current audit files, you noticed that they have not performed the following: 1. audit procedures for presentation and disclosure; and 2. audit procedures for searching contingent liabilities. 

Required: 

(i) Describe the audit objectives of performing audit procedures for presentation and disclosure. 

(ii) For each of the audit objectives described in (i), explain an example of the substantive audit procedures that you would perform in order to achieve those audit objectives.

(iii) Define contingent liability and state the THREE (3) conditions that are required for a contingent liability to exist. 

(iv) Elaborate any FOUR (4) audit procedures commonly used to search for contingent liabilities. 

Answer rating: 100% (QA)

i Audit is an independent examination of financial information of an entity whether profit oriented or not irrespective of its size or legal form in o... View the full answer