Question

Which of the following statements about legal letters is incorrect? Legal letters may include information regarding...

Which of the following statements about legal letters is incorrect?

Legal letters may include information regarding various types of litigation, such as that arising from the potential violation of anti-trust, tax, or securities law.

Legal letters provide the auditor with corroborating evidence concerning contingent liabilities such as litigation, claims, and assessments.

Legal letters are returned from the attorney to the client, for review and presentation to the auditor.

Refusal by the entity’s attorney(s) to provide a legal letter may lead to a scope limitation on the audit.

Homework Answers

Answer #2

option C: Legal letters are returned from the attorney to the client, for review and presentation to the auditor.

legal letter are prepared by attorney on behalf of the client contains information regarding various types of litigation, such as that arising from the potential violation of anti-trust, tax, or securities law.egal letters provide the auditor with corroborating evidence concerning contingent liabilities such as litigation, claims, and assessments.Refusal by the entity’s attorney(s) to provide a legal letter may lead to a scope limitation on the audit in the case of auditing.

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