An Auditor Has Received a Solicitor's Letter in Which No

question 7

Multiple Choice

An auditor has received a solicitor's letter in which no significant disagreements with the client's assessments of contingent liabilities were noted.The resignation of the client's solicitor shortly after receipt of the letter should alert the auditor that:

• A)undisclosed unasserted claims may have arisen.
• B)the solicitor was unable to form a conclusion with respect to the significance of litigation, claims and assessments.
• C)the auditor must begin a new examination of contingent liabilities.
• D)an adverse opinion will be necessary.

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