If a lawyer refuses to furnish corroborating information regarding litigation, claims, and assessments, the auditor should
A) Honor the confidentiality of the client-lawyer relationship.
B) Consider the refusal to be a scope limitation.
C) Seek to obtain the corroborating information from management.
D) Disclose this fact in a footnote to the financial statements.

Question

Quizplus · Accepted Answer

A refusal by a lawyer to furnish corroborating information regarding litigation, claims, and assessments represents a scope limitation, and the auditor should consider the potential effect on the audit opinion. The client-lawyer relationship is protected by privilege and should be respected. Seeking corroborating information from management may not be sufficient, as management may not have the required legal knowledge to provide such information. Disclosure in a footnote is not appropriate, as it could potentially breach the confidentiality of the client-lawyer relationship.

If a Lawyer Refuses to Furnish Corroborating Information Regarding Litigation