In the letter of audit inquiry concerning a description and evaluation of litigation,claims and assessment provided by management to the auditor,the client's lawyer is not requested to provide information on
A)completeness of management's list.
B)compliance of the disclosures with GAAP
C)the likelihood and range of possible losses.
D)any limitations on the lawyer's response.

Question

Quizplus · Accepted Answer

The client's lawyer is not requested to provide information on compliance of the disclosures with GAAP. The responsibility for compliance with GAAP lies with management. The purpose of the letter of audit inquiry is to obtain information from the client's lawyer about litigation, claims, and assessments, including the completeness of management's list, the likelihood and range of possible losses, and any limitations on the lawyer's response.

In the Letter of Audit Inquiry Concerning a Description and Evaluation