D is corrent because the professional standards outline an approach in which auditors obtain information from a client’s lawyer to corroborate client information on litigation, claims, and assessments.
A is incorrect because such attorney-client privilege is ordinarily a matter of law that is not verified on an audit.
B is incorrect because management does corroborate its earlier statements to the auditor in a representation letter. However, this is a much more limited corroboration than that provided by the client’s lawyer, and it is not from an expert outside the company.
C is incorrect because while legal invoices may reveal information on litigation, claims, and assessments, examining such invoices is not considered a primary method as compared to reviewing the lawyer’s response.
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