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A Contingent Liability in the Financial Statements
Search the EDGAR database to find a 10-K that reports a contingent liability. Provide a summarizing one of the liabilities found in the financial statements.
Did the company disclose the liability in the footnotes only, or did it recognize the liability in the financial statements? What procedures might the auditors use to search for the contingent liabilities listed in part? Explain the steps in the procedure in detail, as well as how they would provide the desired outcome. Choose posts that have presented information on a company that you did not discuss in your initial post. Do you agree with the procedure they have presented? Why or why not? What could additional procedures be performed? List the procedure, explain how it is performed, and discuss why it would be appropriate.