Auditing · Audit Evidence
Which of the following audit procedures would provide the auditor with the most reliable audit evidence regarding the likely outcome of a pending litigation against the client?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Review board minutes to understand why the directors believe that the claim will not be successful.
- 2Review correspondence from customers claiming food poisoning to assess whether the client has a present obligation.
- 3Send a confirmation request to the client's external lawyers to obtain their professional opinion on the probability of the claim succeeding.✓
- 4Request a written representation from management supporting their assertion that the claim will not be successful.
Correct answer
Send a confirmation request to the client's external lawyers to obtain their professional opinion on the probability of the claim succeeding.
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