A significant problem that auditors encounter when trying to…

A significant problem that auditors encounter when trying to determine the completeness of recording of litigation-related liabilities is that attorneys and their clients have “attorney-client” privilege and are thus the attorneys are not allowed to respond to auditor inquiries about litigation.

The fundamental point about the Revlon case is that auditors…

The fundamental point about the Revlon case is that auditors’ identification of a critical audit matter (CAM) and conducting related audit procedures that address concerns raised in the CAM will enable the auditor to understand the client’s risks well enough to issue the correct audit opinion.