If the response from the client's legal representative contains a disagreement with management, the auditor should:
A) seek resolution through discussion with management and the lawyer.
B) confirm the information using alternative audit procedures.
C) issue a qualified audit report.
D) seek resolution with management.

Question

Quizplus · Accepted Answer

It is important for the auditor to seek resolution through discussion with both management and legal representative in order to understand the disagreement and any potential implications for the audit opinion. This allows the auditor to make an informed decision and potentially avoid issuing a qualified opinion. Confirming the information using alternative audit procedures would also be appropriate, but it should not be the only course of action taken by the auditor. Issuing a qualified opinion should be a last resort after all other options have been exhausted.

If the Response from the Client's Legal Representative Contains a Disagreement