Beware The Belief Your Response To Auditor A Colossal Waste Of Time
Some lawyers likely will create more potential professional liability over the coming months by drafting a single letter in response to their client’s independent auditor’s request for information than they will throughout the entire rest of the year.
The problem arises primarily because after 40 years of writing these letters to independent auditors, too many attorneys, and auditors, have concluded the entire process is a colossal waste of time.
As a result, too many have failed to develop and implement appropriate internal policies to insure they handle these auditor’s requests according to the professional standards required of them.
Consequently, a sizable number of attorneys, especially solos and those practicing in small- to mid-size firms, remain blissfully unaware of the specific duties owed and the professional liability created when done so improperly, leading to a waiver of client confidentiality, misleading financial reports, and host of other problems.