Consider loss contingencies

a. What is the primary source of information about litigation, claims, and assessments? What is the primary source of corroborative evidence in this regard?

b. Why might client lawyers be hesitant to disclose information to auditors?

c. Who sends the letter of audit inquiry to the clients lawyers? To whom should the lawyer send the response to that letter?

d. What is the effect on the auditors report of a lawyers refusal to furnish the information requested in the letter of audit inquiry?