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Explain what type of audit report is required when the entity has a lawsuit pending...

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Accounting

Explain what type of audit report is required when the entity has a lawsuit pending against it and it is probable that the entity will lose the suit. Management has not accrued the best estimate of the loss, even though it is probable and can be reasonably estimated. Information about the lawsuit is provided in the notes to the financial statements. It is not expected that this lawsuit will have a significant effect on the entity's ability to continue as a going concern, the effect of this accrual is material, but not pervasive?

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