Business Finance Homework Help

I’m working on a accounting discussion question and need a sample draft to help me learn.

A number of companies have pending lawsuits or other contingent liabilities reported in their financial statements.

Search the EDGAR database found at http://www.sec.gov/edgar/searchedgar/companysearch.html). (Links to an external site.) 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. 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?