Question

An attorney is responding to an independent auditor as a result of the entity's letter of inquiry. The attorney may appropriately limit the response to?

1) asserted claims and litigation.
2) matters to which the attorney has given substantive attention in the form of legal consultation or representation.
3) asserted, overtly threatened, or pending claims and litigation.
4) items that have an extremely high probability of being resolved to the entity's detriment.

Answer 1

An attorney may limit their response to asserted claims and litigation when responding to an independent auditor.

Step-by-step explanation:

When responding to an independent auditor, an attorney may appropriately limit the response to matters to which the attorney has given substantive attention in the form of legal consultation or representation. An attorney may limit their response to asserted claims and litigation when responding to an independent auditor.

This means that the attorney should focus on providing information and addressing concerns related to asserted claims and litigation. The response should cover asserted, overtly threatened, or pending claims and litigation, rather than items that have an extremely high probability of being resolved to the entity's detriment.