Which of the following items does the auditor ask the client to send to its legal counsel requesting information about asserted claims?
A)A letter of audit inquiry.
B)A management representation letter.
C)A management letter.
D)A loss reserve confirmation.

Question

Quizplus · Accepted Answer

The auditor would send a letter of audit inquiry to the client's legal counsel requesting information about asserted claims. This inquiry would seek information about existing claims, potential claims, and unasserted claims that could result in future litigation or other disputes. The inquiry would also seek information about the likelihood and magnitude of any potential losses, and would request that the client's legal counsel provide any relevant legal opinions or documentation. A management representation letter is a separate document that the auditor would request from the client's management, not from its legal counsel. A management letter is a communication to management concerning less significant matters identified during the audit, and a loss reserve confirmation is a confirmation of the adequacy of reserves maintained by the client for potential losses.

Which of the Following Items Does the Auditor Ask the Client