Examination of Correspondence Regarding Audits and Disclosures: Attorney's Duty in harmonizing Auditor requirement and Company Confidentiality
On September 11, a Strafford webinar panel titled "Audit Response Letters and Disclosures: Counsel's Role in Balancing Auditor Demands and Company Privileges" will provide insights on navigating the complex legal issues surrounding audit response letters. The panel, organised by Strafford, will feature Alan Wilson and Kenneth McKay, a principal at McKay Law Offices.
The webinar will discuss recent trends in audit response letters, such as the increasingly stringent AICPA Quality Management Standards (QMS) that demand more comprehensive audits and responses. Counsel face complex legal issues in determining disclosures, including managing conflicting demands between auditors and clients, interpreting new quality management standards, and assessing materiality and risk appropriately to avoid over- or under-disclosure.
The panel will also address the delicate balance between satisfying auditor expectations and preserving legal privilege. Counsel must carefully weigh what information to disclose in audit response letters without waiving privileges or exposing clients to unnecessary risks.
The impact of recent and upcoming regulatory and tax legislation on financial statement disclosures and associated audit responses will also be a focus. Counsel need to interpret how new laws affect these disclosures, requiring legal and accounting interplay.
Managing disclosures about contingent liabilities, litigation risks, and compliance issues is legally sensitive and fact-intensive, complicating counsel’s evaluation for inclusion in audit letters. The panel will emphasise the importance of communication protocols to avoid conflicting interpretations and potential audit problems.
Overall, the webinar will highlight the growing challenge of deciphering when and how to disclose sensitive information amid evolving audit expectations, while preserving legal protections and mitigating business risks.
The webinar is open to all interested parties and will offer Continuing Legal Education (CLE) credits for attendees. For those who are unable to attend, a recording of the webinar will be available for purchase.
[1] Information sourced from the Strafford webinar announcement.
- In the webinar, the discussion on audit response letters will include a focus on managing conflicts between auditors and clients, particularly when determining disclosures and interpreting the AICPA Quality Management Standards (QMS).
- The impact of recent and upcoming regulatory and tax legislation on financial statement disclosures and associated audit responses is a key area that will be highlighted in the webinar, requiring legal and accounting interplay to ensure appropriate disclosures and risk mitigation.
