Auditors, as part of completing the audit, will request the client to send a standard inquiry to the client's attorney letter 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) obtain a professional opinion about the expected outcome of existing lawsuits and the likely amount of the liability, including court costs.
C) obtain an outside opinion of the probability of losses in determining accruals for contingencies.
D) obtain an outside opinion of the probability of losses in determining the proper footnote disclosure.

Question

Quizplus · Accepted Answer

The primary reason auditors request a standard inquiry to be sent to a client's attorney is to obtain a professional opinion about the expected outcome of existing lawsuits and the likely amount of the liability, including court costs. This helps the auditor assess the financial implications of these legal matters for the financial statements.

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