Final answer:
An attorney can limit their response to an auditor's inquiry by focusing on litigations in process, asserted claims, matters receiving substantive attention, or items likely to result in loss to the client.
Step-by-step explanation:
When responding to the auditor as a result of the audit client's letter of inquiry, an attorney may limit their response in several ways. One potential limitation could be to limit the response to litigations in process, meaning that the attorney would only discuss legal matters that are currently underway in court. Another option could be to limit the response to asserted claims, which would mean the attorney only provides information on claims that have been formally made against the client.
A third possibility is to limit the response to matters to which the attorney has given substantive attention, such as providing legal consultation or representation; this ensures that the attorney is only commenting on cases where they have a deep understanding and involvement. Lastly, the response could be limited to items which the attorney believes will result in loss to the client, indicating a focus on the most financially significant legal issues at stake. Structuring responses appropriately and considering counterclaims are crucial for a thorough and professional communication with the auditor.