An auditor should request that an audit client send a letter of inquiry to those attorneys who have been consulted concerning litigation, claims, or assessments. The primary reason for this request is to provide:

Question

Quizplus · Accepted Answer

Choice "D" is correct. The primary reason for an auditor to request that the audit client send a letter of inquiry to its attorneys is to provide corroboration of the information furnished by management concerning litigation, claims and assessments. Choice "A" is incorrect. The letter of inquiry is used to corroborate information furnished by management. The likelihood of loss contingencies occurring is only one item addressed in this correspondence, but it is not the primary purpose of the request. Choice "B" is incorrect. The description of litigation, claims and assessments that have a reasonable possibility of unfavorable outcomes should be provided by management, not the attorneys. Choice "C" is incorrect. The attorneys do not give an appraisal of management's controls adopted for identifying and evaluating legal matters.

An Auditor Should Request That an Audit Client Send a Letter