Faye Jaworski, CPA, is auditing the financial statements of Fulbright Company. As she is nearing the audit completion date, Jaworski realizes that she needs to evaluate whether all material contingencies are properly accounted for and disclosed in Fulbrights financial statements. Because of its size, Fulbright has retained external counsel (Vinson, LLP) to handle its various legal matters. Required: a. Select from the list below some common procedures that Jaworski will perform with respect to Fulbrights litigation, claims, and assessments.

check all that apply

• Perform substantive analytical procedures to evaluate recorded amount of ligitation, claims, and assessments.
• Review the legal expense account and cash disbursements records and invoices related to legal services.
• Read contracts, loan agreements, leases, and correspondence from taxing or other governmental agencies.
• Examine customer correspondence documents in clients's possession.
• Scan general ledger for large and unusual transactions
• Obtain assurance from management that it has disclosed all material unasserted claims the lawyer has advised them are likely to be litigated.
• Inquire of management regarding litigation, claims, and assessments.
• Obtain information concerning guarantees from bank confirmations.
• Examine documents in the clients possession concerning litigation, claims, and assessments, including correspondence and invoices from lawyers.
• Obtain assurance from management that it has disclosed all material unasserted claims the lawyer has advised them are likely to be litigated.

b. What are the responsibilities of Jaworski, Fulbright, and Vinson with respect to litigation, claims, and assessments?

c. Attorney letters are used to provide corroboration of litigation, claims, and assessments against the client. Briefly describe the process through which attorney letters are prepared, sent, and used in the audit examination.

d. What information is normally included in an attorney letter?