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Or Information Note: This document, in the form herein set forth, was approved by the Board of Governors of the American Bar Association in December 1975, which official action permitted its release to lawyers and accountants as the standard recommended by the American Bar Association for the lawyer's response to letters of audit inquiry. Source: SAS No. 12. Preamble The public interest in protecting the confidentiality of lawyer-client communications is fundamental. The American legal, politic.
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Incurrence FAQ
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A lawyer's response to an auditor's inquiry concerning litigation, claims, and assessments may be limited to matters that are considered individually or collectively material to the client's financial statements.
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ing to ASC 450, the lawyer should provide the following information to the auditor: (1) a description of the nature of each matter, (2) the progress of each matter to date, (3) how the Company has responded or intends to respond (for example, to contest the case vigorously or to seek an out-of-court settlement), ...
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ingly, the auditor should request the client's management to send a letter of inquiry to those lawyers with whom management consulted concerning litigation, claims, and assessments.
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The Legal Confirmation Process External counsel or law firms engaged to handle such matters may be contacted by auditors for confirmation of the status of legal matters and potential risk of financial gain or loss.
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[Ordinarily the information would include the following: (1) the nature of the litigation, (2) the progress of the case to date, (3) how management is responding or intends to respond to the litigation (for example, to contest the case vigorously or to seek an out-of-court settlement), and (4) an evaluation of the ...
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Ensure your responses directly address the audit issues. Need to define coordinator for the action plan (who is responsible to ensure completion). Need an expected date of completion that makes sense. Need to coordinate efforts, decide technical ownership vs. functional ownership of an issue.
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The lawyer's audit response letter pro- vides meaningful information to the audi- tors by identifying overtly threatened and pending claims being handled by the law- yer and unasserted claims as to which the client specifically requests comment.
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The lawyer's audit response letter pro- vides meaningful information to the audi- tors by identifying overtly threatened and pending claims being handled by the law- yer and unasserted claims as to which the client specifically requests comment.
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