CAF-8 · Chapter 10 · Question 3 of 10
To obtain evidence about a pending legal claim against the client, the auditor should primarily:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Communicate directly with the client's external legal counsel through a letter of inquiry.
Explanation
Direct communication with the client's lawyers provides independent, expert evidence regarding the status, probability, and estimated costs of legal disputes.
More Substantive Procedures: Other Areas MCQs
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