For each of the following issues, select from the option list provided the audit procedures that most likely would have be ul in preventing the noted failure. Each choice may be used once, more than once, or not at all. 1. The auditor failed to uncover a pending penalty for underpayment of taxes. Procedure 2. The auditor failed to identify certain legal claims by a competitor for patent infringements. Procedure 2. The auditor failed to identify certain legal claims by a competitor for patent infringements. Procedure . . 3. The auditor failed to identify required disclosures for cosigning debt instruments for a subsidiary. Procedure ! O Read minutes of the board of directors' meetings. O Inquire of officials at the courthouse in the county of the client. O Read client correspondence with related parties. O Read client correspondence with taxing agencies. O Read client correspondence with customers. .. -11 . IL . . . . . Read all legal briefs filed against competitors. 0 Obtain bank confirmations about loan guarantees, O Obtain from management a description and evaluation of litigation, claims, and assessments. O Obtain representation letters from all staff and professional employees of the client. O Prepare an analysis of professional fee expenses. Inquire of SEC officials about reporting violations creating assessments. 0 Obtain from management a description and evaluation of litigation, claims, and assessments. O Obtain representation letters from all staff and professional employees of the client. O Prepare an analysis of professional fee expenses. O Inquire of SEC officials about reporting violations creating assessments. O Request management to prepare a letter of audit inquiry to legal counsel. O Obtain written or oral assurance from the audit committee that all claims, litigation, and assessments have been properly recorded