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ASA 508 - Enquiry Regarding Litigation and Claims - April 2006
Audit ImplicationsAudit Implications
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Audit Implications
7 It is the responsibility of those charged with governance of an entity to adopt policies and procedures to identify, evaluate, record and report on the outcome of any material legal matter. However, since the factors that would be considered in the accounting for and reporting of legal matters are within the direct knowledge and control of the management of an entity, management is the primary source of information. Ordinarily, the auditor would seek audit evidence from different sources to corroborate management assertions.