Which of the following procedures will most likely assist an auditor in determining whether management has identified all accounting estimates that could be material to the financial statements?

A. Inquire about the existence of related party transactions.

B. Determine whether the outcomes of accounting estimates differ from the amounts originally recognized.

C. Confirm inventories at locations outside the entity.

D. Review the lawyers letter for information about litigation.

The correct answer is D. WHY " D " IS CORRECT ( Perhaps by a real-world example)