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A number of companies have pending lawsuits or other contingent liabilities reported in their financial statements.
1. Search the EDGAR database found at http://www.sec.gov/edgar/searchedgar/companysearch.html to find a company’s 10-K that reports a contingent liability. Write a paragraph summarizing one of the liabilities found in the financial statements.
A.Did the company disclose the liability in the footnotes only, or did it recognize the liability in the financial statements?
B. What procedure might the auditors use to search for the contingent liabilities listed in part (A) ?
(Institute of Internal Auditors). Answer the following questions in your posting:
A. Did the company disclose the liability in the footnotes only, or did it recognize theliability in the financial statements?In the evaluation we used Walmart which reported about $69 million…
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