Which of the following is not an audit procedure that the independent auditor would perform with respect to litigation,claims,and assessments?
A) Inquire of and discuss with management the policies and procedures adopted for identifying, evaluating, and accounting for litigation, claims, and assessments.
B) Obtain from management a description and evaluation of litigation, claims, and assessments that existed at the balance sheet date.
C) Obtain assurance from management that it has disclosed all unasserted claims that the lawyer has advised are likely to be asserted and must be disclosed.
D) Confirm directly with the entity's lawyer that all claims have been recorded in the financial statements.

Question

Quizplus · Accepted Answer

The independent auditor would not directly confirm with the entity's lawyer that all claims have been recorded in the financial statements. This is because the auditor is not allowed to communicate directly with the entity's lawyer without the entity's permission, as it could violate attorney-client privilege. Therefore, the auditor would obtain appropriate audit evidence from management and other sources to support the financial statements' presentation and disclosure of litigation, claims, and assessments.

Which of the Following Is Not an Audit Procedure That