ACC614 Week 6 Discussion 1 Client Request for Attorney Letter with Cole & Cole, CPA’s

Read problem 11.58 Client Request for Attorney Letter on page 528 of the textbook. Describe the omissions, ambiguities, and inappropriate statements and terminology in Brown’s letter. Remember that this is Brown’s letter requesting a response to auditors, but it must request responses in the manner most useful to auditors. Reference this week’s lecture as a foundation for your post.

Omission

The address of Browns firm

No signature at the end of the letter

Brown has not included the information about his firm in the introductory paragraph

Ambiguities

Providing the attorney with instructions on what to do in certain circumstances while placing restrictions on him in others. Brown makes a request to the attorney in the introduction for a response on matters that existed before December 31, 2014, but he warns the attorney about the limitations that are imposed by secrecy. In the fourth paragraph, Brown extends an invitation to the attorney, asking him to supply the auditors with information and suggesting that the attorney may be the best person to explain the matters to the auditors. On the other hand, Brown places limitations on the attorney by noting in the final line that “You may not remark on these topics since exposing them may warn potential litigants to the strengths of their cases.”

Inappropriate statements and terminology

The Company vigorously denies these allegations.

Court decided that the Company

There is some chance that Consolidated may ultimately prevail.

References

Louwers, T. J., Ramsay', R. J., Sinason, D. H., Strawser, J. R., & Thibodeau, J. C. (2015). Auditing & Assurance Services (6 ed.). New York: McGraw-Hill Education,