An Auditor Should Request That an Audit Client Send a Letter

question 452

Multiple Choice

An auditor should request that an audit client send a letter of inquiry to those attorneys who have been consulted concerning litigation, claims, or assessments. The primary reason for this request is to provide:

• A) The opinion of a specialist as to whether loss contingencies are possible, probable, or remote.
• B) A description of litigation, claims, and assessments that have a reasonable possibility of unfavorable outcomes.
• C) An objective appraisal of management's controls adopted for identifying and evaluating legal matters.
• D) The corroboration of the information furnished by management concerning litigation, claims, and assessments.