The responses help identify matters requiring a provision or disclosure as a contingent liability. A lawyer's refusal or limited response may result in a scope limitation.
Source: BDS 501
Related terms
Provisions (TAS 37)Liabilities of uncertain timing or amount; recognised when there is a present obligation arising from a past event, an outflow of resources is probable and a reliable estimate can be made.Contingent liabilityA possible obligation whose existence will be confirmed by uncertain future events, or a present obligation where an outflow of resources is not probable.External confirmationThe auditor obtaining written confirmation of a balance or information directly from a third party (bank, customer, supplier, lawyer).Adverse opinionThe opinion in which the auditor states that the financial statements are not presented fairly, where misstatements are both material and pervasive.Agreed-upon proceduresAn engagement in which the practitioner performs procedures agreed with the entity and, where relevant, a third party, and reports only the findings without providing assurance.Analytical proceduresThe evaluation of financial information through analysis of plausible relationships among financial and non-financial data.
Last updated: November 8, 2026 · This definition is for general information only.