Inquiry of Clients Attorney. To discover litigation, claims, and assessments that affect the client, the auditor relies on both her own field procedures and a letter from the client's legal counsel.

Required

A. What field procedures would an auditor use to discover claims against a client?

B. What evidence should an auditor request from an attorney?

C. Why do auditors typically examine legal expenses in detail even though the amounts involved are normally not a material item in the financial statements?

D. If the client attorney refuses to provide information that is within his jurisdiction and may directly affect the fair presentation of the financial statements, what action should an auditor take?