Final answer:
An attorney refusing to provide information requested in an audit represents a scope limitation from the auditor's perspective, preventing the auditor from obtaining necessary audit evidence.
Step-by-step explanation:
From the auditor's perspective, if an attorney who provided significant litigation counsel to a client refuses to furnish information requested in an audit, the best description of this situation is b. A scope limitation. This term refers to a situation where the auditor is unable to obtain sufficient appropriate audit evidence about certain financial statement items. Since the attorney, in this case, is refusing to provide information related to the litigation counsel they offered, the auditor cannot fully verify all the details necessary for the completion of the audit.
It is important to differentiate this scenario from others listed as options. It is not a departure from GAAP (Generally Accepted Accounting Principles), as this relates to how financial statements are prepared, not how they are audited. This situation does not describe a violation of the attorney-client privilege as this is a legal protection that may justify the attorney's refusal. Lastly, it is not in itself a contingent liability, although the undisclosed information might pertain to potential contingent liabilities.