A refusal by a lawyer to furnish information related to litigation included in the letter of inquiry is likely to result in:
A)Confirmation of related lawsuits with the claimants.
B)Qualification of the audit report.
C)An assessment that loss of the litigation is probable.
D)An adverse opinion.

Question

Quizplus · Accepted Answer

A lawyer's refusal to provide information related to litigation can lead to a lack of sufficient evidence or support for the amounts and disclosures provided in the financial statements. As a result, the auditor may need to issue a qualified opinion on the audit report.

A Refusal by a Lawyer to Furnish Information Related to Litigation