If an attorney refuses to provide the auditor with information about material existing lawsuits or unasserted claims, current professional standards require that the auditor consider the refusal as a scope limitation.

Question

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According to AU-C Section 501, if the auditor is unable to obtain sufficient appropriate audit evidence due to a scope limitation, they must modify the opinion or withdraw from the engagement. Therefore, if an attorney refuses to provide information about material existing lawsuits or unasserted claims, the auditor must consider it a scope limitation and take appropriate actions.

If an Attorney Refuses to Provide the Auditor with Information