If a solicitor refuses to furnish corroborating information regarding litigation, claims and assessments, the auditor should:
A)honour the confidentiality of the client-solicitor relationship.
B)consider the refusal to be a scope limitation.
C)seek to obtain the corroborating information from management.
D)disclose this fact in a footnote to the financial report.

Question

Quizplus · Accepted Answer

Refusal to provide corroborating information is considered a scope limitation that affects the auditor's ability to obtain sufficient evidence to support the financial statements. The auditor should communicate this limitation in the audit report. Honouring the confidentiality of the client-solicitor relationship is important, but it does not override the auditor's responsibilities to obtain sufficient and appropriate evidence to support the audit opinion. Seeking to obtain the information from management is an option, but it may not be sufficient or reliable. Disclosing the fact in a footnote may not be adequate communication of the extent of the limitation.

If a Solicitor Refuses to Furnish Corroborating Information Regarding Litigation