the client attorney must remain independent when evaluating of losing lawsuit

When evaluating the likelihood of losing the lawsuit the client's attorney?

D) The client's attorneys must remain independent when evaluating the likelihood of losing the lawsuit. When using the probability threshold for contingencies, the likelihood of the occurrence of the event is classified as. A) not likely, likely, or highly likely. B) remote, reasonably possible, or …

Can a lawyer keep a client informed about the status?

D) The client's attorneys must remain independent when evaluating the likelihood of losing the lawsuit. 13) When using the probability threshold for contingencies, the likelihood of the occurrence of the event is classified as. A) not likely, likely, or highly likely. B) remote, reasonably possible, or probable.

When does an attorney respond to an independent auditor?

The client's attorneys must remain independent when evaluating the likelihood of losing the lawsuit. When using the probability threshold for contingencies, the likelihood of the occurrence of the event is classified as. remote, reasonably possible, or …

When does the attorney-client privilege end for a lawyer?

D) The client's attorneys must remain independent when evaluating the likelihood of losing the lawsuit. D 13) When using the probability threshold for contingencies, the likelihood of the occurrence of the event is classified as:

Under which of the following circumstances would an entity be expected to accrue a loss contingency for the period under audit?

Under which of the following circumstances would an entity be expected to accrue a loss contingency for the period under audit? The entity estimated the amount of a claim with a probable adverse outcome before issuance of the audit report.

When Should auditors generally assess a client's ability to continue as a going concern?

Auditing standards require that the auditor evaluate whether there is a substantial doubt about a client's ability to continue as a going concern for at least: one year beyond the balance sheet date.

What is one of the main reasons an attorney may refuse to provide auditors with complete information about contingent liabilities?

What is one of the main reasons an attorney may refuse to provide auditors with complete information about contingent liabilities? The attorneys refuse to disclose information they consider confidential. The attorneys refuse to respond due to a lack of knowledge about matters involving contingent liabilities.

Why are attorneys reluctant to respond to an auditor's request for information about the attorney's client?

Attorneys may be reluctant to provide the auditor with information about the unasserted claims because of client-attorney privilege. Attorneys may also be concerned that disclosure of the unasserted claim may itself result in lawsuits.

How do you evaluate the entity's ability to continue as a going concern?

The auditor's conclusion about the entity's ability to continue as a going concern should be expressed through the use of the phrase "substantial doubt about its (the entity's) ability to continue as a going concern" [or similar wording that includes the terms substantial doubt and going concern] as illustrated in ...

What should the auditor consider when evaluating whether an entity is a going concern?

If the entity has prepared cash flow forecasts and their consideration is critical in the management's plans in respect of going concern, the auditor shall evaluate the reliability of the underlying data used in the forecasts and determine whether the assumptions underlying the forecast can be adequately supported by ...Mar 1, 2012

Why do auditors send legal confirmations?

A legal confirmation or legal representation letter is an inquiry sent by an auditor (with their client's approval) to a law firm engaged by the client for the purpose of determining the status of litigation, claims and assessments pertaining to the audited client.Oct 1, 2019

What is the primary purpose of the auditors request for an attorney's letter relating to a client?

The purpose of the attorney's letter is to inform and certify to the auditor of any legal action against the client that could result in an adverse financial impact on the company's financial statements.

What is the auditors role in testing subsequent events?

10, the auditor identifies subsequent events that require adjustment of, or disclosure in, the financial statements, the auditor should determine whether each such event is appropriately reflected in the financial statements in accor- dance with the applicable financial reporting framework.

Why should the auditor perform inquiry of client's attorney in audit of financial statements?

08 A letter of audit inquiry to the client's lawyer is the auditor's primary means of obtaining corroboration of the information furnished by management concerning litigation, claims, and assessments. ...

What is the effect on the auditor's report of a lawyer's refusal to furnish the information requested in the letter of audit inquiry?

A lawyer's refusal to furnish the information requested in an inquiry letter either in writing or orally (see paragraphs . 09 and . 10) would be a limitation on the scope of the audit sufficient to preclude an unqualified opinion (see section 508.22 and . 23).

What is an auditor's primary method to corroborate information on litigation claims and assessments?

An attorney's letter is the primary method used to corroborate information on litigation, claims, and assessments.