Question

Which of the following items does the auditor ask the client to send to its legal counsel requesting information about asserted claims?

a. A letter of audit inquiry.

b. A management representation letter.

c. A management letter.

d. A loss reserve confirmation.

Answer 1

The correct document an auditor asks a client to send to its legal counsel for information about asserted claims is a letter of audit inquiry. It's used during audits to communicate with legal counsel regarding litigation that may affect financial statements.

Step-by-step explanation:

When an auditor asks a client to send a letter to its legal counsel requesting information about asserted claims, the correct document to use is a letter of audit inquiry. This is a standard procedure during an audit for obtaining information regarding litigation, claims, and assessments involving the client. The letter of audit inquiry serves as a communication tool between the auditor and the legal counsel to identify any legal matters that may have a financial impact on the organization's financial statements.