Auditors, as part of completing the audit, will request the client to send a letter of inquiry to those attorneys the company has been consulting with during the year under audit regarding legal matters of concern to the company.The primary reason the auditor requests this information is to:
A)determine the range of probable loss for asserted claims.
B)corroborate of information supplied by management concerning litigation, claims, and assessments.
C)outside opinion of probability of losses in determining accruals for contingencies.
D)outside opinion of probability of losses in determining the proper footnote disclosure.

Question

Quizplus · Accepted Answer

The primary reason auditors request a letter of inquiry to attorneys is to corroborate information provided by management about litigation, claims, and assessments. This helps ensure that the financial statements accurately reflect any potential liabilities.

Auditors, as Part of Completing the Audit, Will Request the Client