54 paragraphs found
If the auditor assesses a risk of material misstatement regarding litigation or claims that have been identified, or when audit procedures performed indicate that other material litigation or claims may exist, the auditor shall endeavour to, in addition …
Where in‑house legal counsel has the primary responsibility for litigation and claims and is in the best position to corroborate management’s representations, the auditor shall endeavour to obtain a representation letter from the in‑house legal counsel, …
Direct communication with the entity’s external legal counsel assists the auditor in obtaining sufficient appropriate audit evidence as to whether potentially material litigation and claims are known and management’s estimates of the financial …
In some cases, the auditor may seek direct communication with the entity’s external legal counsel through a letter of general enquiry. For this purpose, a letter of general enquiry requests the entity’s external legal counsel to inform the auditor of any …
If it is considered unlikely that the entity’s external legal counsel will respond appropriately to a letter of general enquiry, for example if the professional body to which the external legal counsel belongs prohibits response to such a letter, the …
An example of a letter of specific enquiry is included in [Aus] Appendix 1 . …
An auditor may in some cases request that management send a letter of enquiry to the entity’s legal counsel who are not identified as currently handling the entity’s litigation and claims. For example when the entity has changed legal counsel on a …
In certain circumstances, the auditor also may judge it necessary to meet with the entity’s external legal counsel to discuss the likely outcome of the litigation or claims. This may be the case, for example, where: The auditor determines that the matter …
If both in‑house and external legal counsel are involved in advising the entity on the same litigation and claims, the auditor would ordinarily seek a letter of enquiry from the legal counsel with the primary responsibility for that matter. However, …
If information comes to the auditor’s attention that may indicate the existence of material liabilities resulting from litigation and claims on which management has not sought advice, the auditor ordinarily discusses the matter with those charged with …