Accounting- : Volkswagen are now caught in to the global

. png” alt=”Macintosh hd: users: beiniluo: desktop: 屏幕快照 2015-10-01 下午4. 22. 35. png”>: Volkswagen are now caught in to the global emissions scandal. the Australia Competition and Consumer Commission is waiting for the response from head office in German. As is the Volkswagen cars (over 50,000) sold in Australia had been affected. the Volkswagen would face over ten million dollars fines. My Question is: the key account related to the case should be provision for legal action OR contingent liability for legal action?if it is contingent liability, what are the 2 assertions the auditor could give?how could I give substantive test to collect evidence for each assertions?I have attached the assertion worksheet in attachment. please help me work out it, thank you!

Accounting- : Volkswagen are now caught in to the global

Question
.png” alt=”Macintosh hd:users:beiniluo:desktop:屏幕快照 2015-10-01 下午4.22.35.png”>: Volkswagen are now caught in to the global emissions scandal. the Australia Competition and Consumer Commission is waiting for the response from head office in German. As is the Volkswagen cars (over 50,000) sold in Australia had been affected. the Volkswagen would face over ten million dollars fines.

My Question is:

the key account related to the case should be provision for legal action OR contingent liability for legal action?

if it is contingent liability, what are the 2 assertions the auditor could give?

how could I give substantive test to collect evidence for each assertions?

I have attached the assertion worksheet in attachment. please help me work out it, thank you!