54 paragraphs found
Audit procedures that are undertaken for different purposes might also identify litigation and claims. Such procedures include: examining contracts, loan agreements, leases, insurance policies and claims, and other correspondence; reading minutes of …
Audit evidence obtained for purposes of identifying litigation and claims that may give rise to a risk of material misstatement also may provide audit evidence regarding other relevant considerations, such as valuation or measurement, regarding litigation …
Depending on the circumstances, the auditor may judge it appropriate to examine related source documents, such as invoices for legal expenses, as part of the auditor’s review of legal expense accounts. …
The procedures outlined in paragraphs A1‑A4 are methods whereby the auditor can identify both material litigation and claims and legal counsel who have been consulted by the entity. However, these procedures may not necessarily provide the auditor with …
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 …