Your client has returned to you the representation letter that they sent to their lawyer....
60.1K
Verified Solution
Link Copied!
Question
Accounting
Your client has returned to you the representation letter that they sent to their lawyer. The letter contains the following statement from the client's lawyer: "the directors seem to underestimate the likelihood of losing the case, and the potential financial settlement amount. We believe that there is little chance of successfully defending the matter, and expect that there will be amounts payable in the vicinity of $3 million, not $1 million. We do however remind you that the matter is only in preliminary stages and could still go either way. Has the auditor collected this evidence in the appropriate way? What should the auditor do in regards to the information provided by the lawyer? Your client has returned to you the representation letter that they sent to their lawyer. The letter contains the following statement from the client's lawyer: "the directors seem to underestimate the likelihood of losing the case, and the potential financial settlement amount. We believe that there is little chance of successfully defending the matter, and expect that there will be amounts payable in the vicinity of $3 million, not $1 million. We do however remind you that the matter is only in preliminary stages and could still go either way. Has the auditor collected this evidence in the appropriate way? What should the auditor do in regards to the information provided by the lawyer
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
