Litigation and Provisions
Test that every legal matter is provided for, disclosed or set aside as its likelihood requires.
- Ledger + litigation register from the lawyers' replies
- Key analysis in Equity & legal
How the result is read
The lawyers’ replies to the inquiry letters are the evidence (ISA 501, AU-C 501). A matter whose outflow is probable needs a provision at the best estimate (IAS 37.14, FRS 102.21.4; under ASC 450 the low end of a range when no point is better); a possible one needs a note describing it (IAS 37.86, ASC 450-20-50); a remote one needs nothing. Management’s view is recorded beside the lawyer’s, and where they differ the lawyer’s is the one tested. The register’s provisions are then agreed in total to what the ledger carries.
In the application
Litigation and Provisions is filed under Equity & legal, index letter J. "Run all analyses" runs it with every other analysis the ledger and the documents loaded can answer. The worksheet states the population it tested on its face — or "Not applicable" with the reason when a column it depends on is empty — and the Excel workbook the engagement exports files it under J, beside an index of the source files with their SHA-256 fingerprints.
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Run your next audit file test without the Excel crash.
One free engagement to evaluate, valid 60 days. The ledger never leaves the machine.
- 20 minutes
- Runs on a fictional engagement
- No client data required