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 client's lawyer that all claims have been recorded in the financial statements.

Question

Quizplus · Accepted Answer

Confirming directly with the client's lawyer that all claims have been recorded in the financial statements is not a typical audit procedure with respect to litigation, claims, and assessments. The auditor would rely on management's descriptions and evaluations of litigation, claims, and assessments and would obtain assurance from management regarding disclosure of unasserted claims advised by the lawyer to be disclosed.

Which of the Following Is Not an Audit Procedure That