The PA is having a discussion with his client about the outcome of several lawsuits that are presently in progress.The client has requested that the comments during the discussion be removed from the audit file.The client would like the only documentation in the audit file to be the legal letter from the client and brief comments regarding the auditor's judgments with respect to the quality of disclosure in the financial statements.The client is concerned that
A)only high-quality audit working papers be included in the working paper files.
B)auditors may breach confidentiality and disclose information about the client.
C)the auditor's working paper files may be subpoenaed by the courts.
D)the audit firm does not have adequate quality control procedures.

Question

Quizplus · Accepted Answer

The client's request to limit the documentation in the audit file, especially concerning discussions about ongoing lawsuits, suggests a concern that the auditor's working paper files could be subpoenaed by the courts. This would potentially expose sensitive information discussed during the audit process.

The PA Is Having a Discussion with His Client About