An auditor should obtain written representations from the company's attorney concerning litigation claims and assessments,which may be limited to matters that are considered either individually or collectively material.An understanding on the limits of materiality for this purpose has been reached by:
A)The auditor and the client's lawyer.
B)Management and the auditor.
C)Management,the client's lawyer,and the auditor.
D)The auditor independently of management.

Question

Quizplus · Accepted Answer

Management and the auditor are responsible for determining the limits of materiality for the purpose of obtaining written representations concerning litigation claims and assessments. This understanding is crucial for the auditor to evaluate the financial implications of these matters on the financial statements.

An Auditor Should Obtain Written Representations from the Company's Attorney