When requiring a letter of audit inquiry from the client's attorney,which of the following information will be requested?
A)A statement regarding conflicts of interest that the attorney may have with the client.
B)The attorney's expert opinion of proper GAAP treatment related to client contingencies.
C)An evaluation of the likelihood of unfavorable outcome of,and estimated losses from contingencies.
D)Possible auditor defenses for third-party litigation related to ordinary negligence claims.

Question

Quizplus · Accepted Answer

When requesting a letter of audit inquiry from the client's attorney, the auditor would typically request an evaluation of the likelihood of an unfavorable outcome of, and estimated losses from, contingencies. It is important to note that the attorney's evaluation would be based on legal principles, as opposed to GAAP. While the other options may also be requested from the attorney in certain circumstances, they are not typically included in the letter of audit inquiry.

When Requiring a Letter of Audit Inquiry from the Client's