You are the auditor of MCT Ltd. For the year ended 30 June 2021, MCT disclosed in
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Question:
You are the auditor of MCT Ltd. For the year ended 30 June 2021, MCT disclosed in its financial statements contingent liabilities of $5 million. These contingent liabilities related to lawsuits filed against the company that are outstanding at year end. You audited the account and noted that the account balance is $5 million less than the contingent liabilities estimated by the company's solicitors. Management argued that the solicitors overestimated the potential liabilities and that the estimate by management was more reasonable.
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What form of opinion you would consider the most appropriate to use? Give reasons
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date: