Which of the Following Procedures Should an Auditor Perform Concerning

Multiple Choice

Which of the following procedures should an auditor perform concerning litigation, claims, and assessments?

A) Inspect legal documents in the possession of the client's lawyer that are relevant to pending litigation and unasserted claims and assessments.
B) Discuss with the client's lawyer its philosophy of defending litigation, claims, and assessments that have a high probability of being resolved unfavorably.
C) Confirm directly with the client's lawyer that all litigation, claims, and assessments have been properly recorded in the financial statements.
D) Obtain assurance from management that it has disclosed all unasserted claims that its lawyer has advised are probable of assertion.