Audit procedures continued for Finding contingencies 2 Analyze legal expense for the period under audit and review invoices and statements from legal counsel 2 Obtain a letter for each major attorney performing legal services 2 Review working papers for any information that may indicate a potential contingency. 2 Examine letters of credit in force as of the balance sheet date and obtain a confirmation of the used and unused balance Arens, Loebbecke, Auditing, &/E o2000 by Prentice Hall, Il
Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Analyze legal expense for the period under audit and review invoices and statements from legal counsel. Obtain a letter for each major attorney performing legal services. Review working papers for any information that may indicate a potential contingency. Examine letters of credit in force as of the balance sheet date and obtain a confirmation of the used and unused balance. Audit Procedures for Finding Contingencies continued
FIGURE 23-2 BANERGEE BUILDING CO 409 Lane Drive Buffalo, New York 10126 5th Street Ne January 26, 2000 k, New york 10023 Our auditors, Clarrett Co, CPAs(1133 Broadway, New York, New York 10019), are conducting an audit of our fi for the fiscal year ended December 31, 1999. Typical th respect Inquire we the completion of their audit, which is anticipated to be on or about February 13,200 rovide to our auditor (1)Such explanation, if any, that you volvinssary to supplement the listed ginning of this fiscal year through h the date of Attorney,≡ (2)Such explanation, if any, that you co pplement the listing of may differ from those stated and an identification of the igation, claim, and assessment or a an explanation of those matters as to which your views may differ from thos We understand tha ania l statement disclosure, you have feted possible daim or ble clai dards No 5 Please specifically identify the of and reasons for any limitations in your response. Caut gona Clark Jones, Pres Arens, Loebbecke, Auditing, &/E o2000 by Prentice Hall, Il
Arens, Loebbecke; Auditing, 8/E © 2000 by Prentice Hall, Inc. Typical Inquire of Attorney FIGURE 23-2