identifying loss contingencies

Once the audit evidence is gathered and the testing is complete, how do you know there are no other items outstanding? To ensure the audit is complete, it is important to examine loss contingencies.

Jason Long, CPA, has completed his examination of accounts payable and other liabilities of the Jackson Company. He has now shifted his attention to search for any loss contingencies by looking for litigation, claims, and other types of assessments.

  • How should Jason Long plan to search for these loss contingencies?
  • What are some sources he can use to identify if loss contingencies exist?
  • What should be considered when reporting loss contingencies?

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