Normally, inquiries are sent only to lawyers who have given considerable attention to an issue in their capacity as a client's legal consultants or representatives. When examining a lawyer's response, auditors should look for responses that lack clarity regarding the potential outcome of the case.
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inquiry letter to a lawyer prepared in accordance with section 337, Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments, the date by which the lawyer's response should be sent to the auditor. Also, should the letter request the lawyer to specify in his response the latest date covered by his review (the "effective date")?.02 Interpretation—Yes. It should be …
AI 17: Inquiry of a Client's Lawyer Concerning Litigation, Claims, and Assessments: Auditing Interpretations of AS 2505. The auditor should be aware of and consider auditing interpretations applicable to his or her audit. If the auditor does not apply the auditing guidance included in an applicable auditing interpretation, the auditor should be prepared to explain how he or she …
Oct 29, 2020 · 4. The standard letter of inquiry to the client's legal counsel should be prepared on: A. plain paper (no letterhead) and be unsigned. B. lawyer's stationery and signed by the lawyer. C. auditor's stationery and signed by an audit partner. D. client's stationery and signed by a company official.
The standard letter of inquiry to the client's legal counsel should be prepared on: client's stationery and signed by a company official. What is one of the main reasons an attorney may refuse to provide auditors with complete information about contingent liabilities? 1.
[Ordinarily the information would include the following: (1) the nature of the litigation, (2) the progress of the case to date, (3) how management is responding or intends to respond to the litigation (for example, to contest the case vigorously or to seek an out-of-court settlement), and (4) an evaluation of the ...
What information is typically requested in a legal letter to an entity's attorney? A list and evaluation of any pending or threatened litigation to which the attorney has devoted substantial attention.
Which of the following would the auditor expect to find in the client's management representation letter? analytical procedures.
Appropriateness is the measure of the quality of audit evidence, i.e., its relevance and reliability. To be appropriate, audit evidence must be both relevant and reliable in providing support for the conclusions on which the auditor's opinion is based.
One important primary source of evidence concerning loss contingencies is the client's management; a primary source of corroborative evidence concerning contingencies is the client's legal counsel, which provides the management representation letter. 14-7.
The auditor should consider whether the year-end balances of the particular asset or liability accounts that might be selected for interim examination are reasonably predictable with respect to amount, relative significance, and composition.
As you can imagine, a letter of representation is an important piece of evidence in any audit. Management's representations and attestations in the letter provide some assurance that the information provided during the examination is reliable to use in audit procedures and to base its opinion.Aug 29, 2018
Examples of audit documentation include memoranda, confirmations, correspondence, schedules, audit programs, and letters of representation. Audit documentation may be in the form of paper, electronic files, or other media. 5.