Final answer:
If management fails to list an unasserted claim in the letter of inquiry to a lawyer, it can be considered a failure of their responsibility. The lawyer is not required to inform the auditors, but they have a professional duty to respond honestly to the letter of inquiry.
Step-by-step explanation:
In order to address the question, it is important to understand the roles and responsibilities of management, lawyers, and auditors in the context of unasserted claims in a financial statement audit.
When management prepares the letter of inquiry to the lawyer, it is their responsibility to include all unasserted claims (potential legal claims) that may have a material impact on the financial statements. If management fails to list an unasserted claim in the letter of inquiry, it can be considered a failure of their responsibility.
While the lawyer is not required to inform the auditors specifically about the omission, the lawyer has a professional duty to respond to the letter of inquiry honestly and to the best of their knowledge. If the lawyer becomes aware of any unasserted claims that were not listed in the letter of inquiry, they have an obligation to communicate with management and potentially update their response to the auditors.