Each of the following is an independent situation related to potential contingencies and the results of the auditors attempt to obtain information from the clients attorneys.

A. The auditor should be sure this is disclosed by management in the notes to the financial statements. The auditor normally would rely on the review of internally available information and modify the wording of the management representation letter.

B. No auditor response is necessary in this situation.

C. The auditor should issue an adverse opinion.

For each situation below, select the item that most correctly states the auditors course of action-A,B,C

1. The attorney refused to furnish the requested information.

2. The attorney was unable to form an opinion on the probability or amount of a pending lawsuit, but the auditor believes that the amount could be material.