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itpf04 itpf04
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A year ago
You are auditing Rodgers and Company. You are aware of a potential loss due to noncompliance with environmental regulations. Management has assessed that there is a 40% chance that a $10M payment could result from the non-compliance. The appropriate financial statement treatment is to

▸ accrue a $4 million liability.

▸ disclose a liability and provide a range of outcomes.

▸ since there is less than a 50% chance of occurrence, ignore.

▸ since there is greater that a remote chance of occurrence, accrue the $10 million.
Textbook 
Auditing and Assurance Services

Auditing and Assurance Services


Edition: 17th
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dasneakdasneak
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A year ago
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itpf04 Author
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A year ago
This calls for a celebration Person Raising Both Hands in Celebration
ezsancheezy
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Yesterday
Good timing, thanks!
Starfiew
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2 hours ago
this is exactly what I needed
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