Management Furnishes the Independent Auditor with Information Concerning Litigation, Claims

question 49

Multiple Choice

Management furnishes the independent auditor with information concerning litigation, claims, and assessments. Which of the following is the auditor's primary means of initiating action to corroborate such information?

• A) Request that client lawyers undertake a reconsideration of matters of litigation, claims, and assessments with which they were consulted during the period under examination.
• B) Request that client management send a standard inquiry to the client's attorney letter to those lawyers with whom management consulted concerning litigation, claims, and assessments.
• C) Request that client lawyers provide a legal opinion concerning the policies and procedures adopted by management to identify, evaluate, and account for litigation, claims, and assessments.
• D) Request that client management engage outside attorneys to suggest wording for the text of a footnote explaining the nature and probable outcome of existing litigation, claims, and assessments.

---

Definitions:

Reflection

The process of thoughtfully considering one's experiences in order to gain insights or understanding.

Information Giving

The act of providing data, facts, or insights to someone who lacks them, often to help make informed decisions or understand a situation better.

Client Behavior

Actions, reactions, or mannerisms displayed by a client, which are often the focus of assessment and intervention in therapy.

Universality

The quality of being universal; applicable or significant in all cases, or in certain contexts, the feeling of being part of a larger human experience.