As an auditor, we would examine the nature with the legal expense even though it can be not materilized / substantial in the audit engagement perspective from review of legal expenses.
The rationale will be to examine the nature with the expense incurred and to look for any outstanding litigation against the firm, or the business is involving in any legal circumstances. Because the damages for litigation may very well be tremendous, and necessary to become disclosed towards the financial statement end users.
Therefore, thorough examination is expected.
However, ' Legal Confirmation' may very well be sent for the client's lawyers to confirm if there is certainly any on-going legal circumstances against the firm.
See Also:
See Also:
