Which of the following is not an audit procedure that the independent auditor would perform with respect to litigation, claims, and assessments in audit procedures for subsequent events and contingent liabilities?
A)Inquire of and discuss with management the policies and procedures adopted for identifying, evaluating, and accounting for litigation, claims, and assessments.
B)Obtain a legal letter.
C)Obtain a written representation from management that all litigation, asserted and unasserted claims, and assessments have been disclosed.
D)Confirm directly with the entity's lawyer that all claims have been recorded in the financial statements.

Question

Quizplus · Accepted Answer

The independent auditor would not confirm directly with the entity's lawyer that all claims have been recorded in the financial statements. This is not a typical audit procedure as the entity's lawyer may not be able to provide complete and accurate information regarding the recording of claims in the financial statements. Rather, the auditor would primarily rely on management's policies and procedures, legal letters, and written representations to obtain sufficient audit evidence with respect to litigation, claims, and assessments.

Which of the Following Is Not an Audit Procedure That