- contingent liability
- A potential liability whose existence and quantification are doubtful. Most systems of *Generally Accepted Accounting Principles require the *disclosure of *material contingent liabilities in financial statements. Contingent liabilities normally depend on the occurrence or outcome of a specific event. An example of a contingent liability is a court case whose outcome is uncertain, but which may give rise to significant costs against an organization. External auditors use *attorney letters to obtain *audit evidence of this nature. Contrast *contingent asset.
Auditor's dictionary. 2014.
Look at other dictionaries:
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