Final answer:
Audit procedures related to contingent liabilities are initially focused on completeness.
Step-by-step explanation:
Audit procedures related to contingent liabilities are initially focused on completeness.
Contingent liabilities are potential obligations arising from past events, such as lawsuits or warranties, that are dependent on uncertain future events. These liabilities may or may not require future payment, and therefore, it is important for auditors to ensure that they are properly disclosed and accounted for in the financial statements.
Auditors perform procedures such as reviewing contracts and legal documents, obtaining legal opinions, and making inquiries to management to assess the completeness of contingent liabilities.