Week 5 Learning Team Assignment Grading Guide ACC/492 Version 8 2 Learning Team Assignment: Week 5 Learning Team Assignment Purpose of Assignment Prior to completing the audit, the auditor needs to identify any activity that might affect their reporting. Identification of contingent liabilities and subsequent events are key links between completing fieldwork and issuing the auditors’ report. A contingent liability is a potential liability (e.g. damages to be paid for a pending lawsuit or a product warranty). For example, if the outcome of a lawsuit and/or amount to be paid in a lawsuit is unknown or unknowable, the company cannot or should not record the amount owed in a particular period in its financial statements. The company may be found not liable for the lawsuit. However, because there is the potential for damages payments, this information needs to be disclosed so the reader of the financial statements can factor that information into their analysis of the company. Likewise, use of warranties is often an unknown. Consequently, how the company plans to account for these should be disclosed. According to the AICPA, “An independent auditor's report ordinarily is issued in connection with historical financial statements that purport to present financial position at a stated date and results of operations and cash flows for a period ended on that date. However, events or transactions sometimes occur subsequent to the balance-sheet date, but prior to the issuance of the financial statements. This can have a material effect on the financial statements and therefore require adjustment or disclosure in the statements. These occurrences hereinafter are referred to as "subsequent events." (AU 560). The purpose of this assignment is to give the student some experience in addressing two key steps an auditor goes through as they complete fieldwork and begin preparing for the reporting phase of the audit. Grading Guide Content Met Partially Met Not Met Comments: Explains the importance of reviewing for contingent liabilities and subsequent events. Describes the requirements for reviewing for contingent liabilities and subsequent events. Presentation consists of 10 to 12-slides and is appropriate for the audience. The presentation includes relevant media and visual aids that are consistent with the content. Total Available Total Earned X #/X Presentation Guidelines Met Partially Met Not Met Comments: The presentation is laid out with effective use of headings, font styles, font sizes, and white space. Intellectual property is recognized with in-text citations and a reference slide. The presentation includes an introduction and conclusion that preview and review major points. Major points are stated clearly; are supported by specific details, examples, or analysis; and are organized logically. Rules of grammar and usage are followed including spelling and punctuation. Total Available To.

1. Week 5 Learning Team Assignment Grading Guide
ACC/492 Version 8
2
Learning Team Assignment: Week 5 Learning Team Assignment
Purpose of Assignment
Prior to completing the audit, the auditor needs to identify any
activity that might affect their reporting. Identification of
contingent liabilities and subsequent events are key links
between completing fieldwork and issuing the auditors’ report.
A contingent liability is a potential liability (e.g. damages to be
paid for a pending lawsuit or a product warranty). For example,
if the outcome of a lawsuit and/or amount to be paid in a
lawsuit is unknown or unknowable, the company cannot or
should not record the amount owed in a particular period in its
financial statements. The company may be found not liable for
the lawsuit. However, because there is the potential for damages
payments, this information needs to be disclosed so the reader
of the financial statements can factor that information into their
analysis of the company. Likewise, use of warranties is often an
unknown.
Consequently, how the company plans to account for these
should be disclosed.
According to the AICPA, “An independent auditor's report
ordinarily is issued in connection with historical financial
statements that purport to present financial position at a stated
date and results of operations and cash flows for a period ended
on that date. However, events or transactions sometimes occur
subsequent to the balance-sheet date, but prior to the issuance
of the financial statements. This can have a material effect on

2. the financial statements and therefore require adjustment or
disclosure in the statements. These occurrences hereinafter are
referred to as "subsequent events." (AU 560).
The purpose of this assignment is to give the student some
experience in addressing two key steps an auditor goes through
as they complete fieldwork and begin preparing for the
reporting phase of the audit.
Grading Guide
Content
Met
Partially Met
Not Met
Comments:
Explains the importance of reviewing for contingent liabilities
and subsequent events.
Describes the requirements for reviewing for contingent
liabilities and subsequent events.
Presentation consists of 10 to 12-slides and is appropriate for
the audience.

3. The presentation includes relevant media and visual aids that
are consistent with the content.
Total Available
Total Earned
X
#/X
Presentation Guidelines
Met
Partially Met
Not Met
Comments:
The presentation is laid out with effective use of headings, font
styles, font sizes, and white space.
Intellectual property is recognized with in-text citations and a
reference slide.

4. The presentation includes an introduction and conclusion that
preview and review major points.
Major points are stated clearly; are supported by specific
details, examples, or analysis; and are organized logically.
Rules of grammar and usage are followed including spelling and
punctuation.
Total Available
Total Earned
X
#/X
Assignment Total
#
X
#/X
Additional comments:

5. Copyright © 2016 by University of Phoenix. All rights reserved.
This is the team assignment and my portion I will highlight and
add below. Also I will add the grading scale to ensure proper
work. Thank you.
You and your team have completed your fieldwork and have a
handful of other considerations before you compete the audit
and issue your report. These activities are designed to ensure
nothing significant has occurred between the completion of your
fieldwork and the issuing of the audit report. You are assigned
as a senior on the staff, in line to be promoted to manager, to
instruct the other staff on the importance of considering
contingent liabilities, letters from client lawyers, and
subsequent events.
Createa 10- to 12-slide presentation for the staff.
Explain the importance of reviewing for contingent liabilities
and subsequent events.
Describe the requirements for reviewing for contingent
liabilities and subsequent events.
My Portion
You and your team have completed your fieldwork and have a
handful of other considerations before you compete the audit
and issue your report. These activities are designed to ensure
nothing significant has occurred between the completion of your
fieldwork and the issuing of the audit report. You are assigned
as a senior on the staff, in line to be promoted to manager, to
instruct the other staff on the importance of considering
contingent liabilities, letters from client lawyers, and
subsequent events.

6. Create a 2-3 slide presentation for the staff.
Explain the importance of reviewing for subsequent events.