Identify 3 useful audit procedures for uncovering contingent liabilities that Johnson will likely perform in the normal conduct of the audit, even if she had no responsibility for uncovering contingencies.

Required:

a. Distinguish between contingent liabilities and commitments and explain why both are important in an audit.

b. Identify 3 useful audit procedures for uncovering contingent liabilities that Johnson will likely perform in the normal conduct of the audit, even if she had no responsibility for uncovering contingencies.

c. Identify 3 other procedures Johnson is likely to perform specifically for the purpose of identifying undisclosed contingencies to help her obtain evidence about the completeness presentation and disclosure objective.

d. Identify 3 useful audit procedures for uncovering commitments that Johnson will likely perform as part of the audit in other accounts.

Each student should choose one of the four questions above (a-d) to answer in their original post and then respond to at least two other students posts sometime during the week. You can agree or disagree with other students but make sure you explain why you agree or disagree.