Julia Is in the Process of Auditing the Legal Liability

question 45

Essay

Julia is in the process of auditing the legal liability section of the financial statements.The controller indicated that he did not want her to contact their external lawyers and he is refusing to grant her access to the detail of the legal expense for the year and any legal invoices.What should Julia do in this situation? Indicate the steps she should take.

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Definitions:

Employee Benefits Expense

Costs incurred by employers to provide benefits to employees, such as health insurance, pensions, and paid leave, beyond regular wages or salaries.

FICA Tax

Federal insurance contributions tax; a U.S. federal payroll tax imposed on both employees and employers to fund Social Security and Medicare.

FUTA Tax

The Federal Unemployment Tax Act tax, which employers pay to fund state workforce agencies.

SUTA Tax

State Unemployment Tax Act tax, a payroll tax that employers must pay to fund the government unemployment insurance program.