The auditors' primary means of obtaining corroboration of management's information concerning litigation is a:
A)Letter of audit inquiry to the client's lawyer.
B)Letter of corroboration from the auditor's lawyer upon review of the legal documentation.
C)Confirmation of claims and assessments from the other parties to the litigation.
D)Confirmation of claims and assessments from an officer of the court presiding over the litigation.

Question

Quizplus · Accepted Answer

The auditors' primary means of obtaining corroboration of management's information concerning litigation is a letter of audit inquiry to the client's lawyer. This letter will request information regarding the nature and status of any pending or threatened litigation, claims, or assessments, as well as the likelihood and degree of any potential loss or gain. The lawyer's response will provide the auditor with valuable information to assess the potential impact on the financial statements and evaluate management's estimates and disclosures.

The Auditors' Primary Means of Obtaining Corroboration of Management's Information