An Auditor Should Request That an Audit Client Send a Letter

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.