The scope of an audit is not restricted when an attorney letter limits the response to
A) Matters to which the attorney has given substantive attention in the form of legal representation.
B) An evaluation of the likelihood of an unfavorable outcome of the matters disclosed by the entity.
C) The attorney's opinion of the entity's historical experience in recent similar litigation.
D) The probable outcome of asserted claims and pending or threatened litigation.

Question

Quizplus · Accepted Answer

An attorney letter that limits the response to matters to which the attorney has given substantive attention in the form of legal representation does not restrict the scope of an audit. This means that the auditor can still inquire about and obtain evidence for other matters related to the financial statements. The other choices, B, C, and D, may limit the scope of the audit depending on the information provided by the attorney.

The Scope of an Audit Is Not Restricted When an Attorney