The “American Bar Association Sample Letter to Auditor” is a guide. Lawyers use it to reply to auditor inquiries. These inquiries ask lawyers to confirm client information. This usually happens during a financial audit.
Need to respond to an auditor? Don’t worry about starting from scratch. We’ve got you covered.
This article provides sample letters. These samples follow the ABA guidelines. Use them to easily draft your own response.
American Bar Association Sample Letter To Auditor
**American Bar Association Sample Letter To Auditor**
[Date]
[Auditor Name]
[Auditor Address]
**Subject: Audit of American Bar Association Financial Statements**
Dear [Auditor Name],
The American Bar Association (ABA) engages your firm to audit our financial statements for the fiscal year ending [Date]. These statements include the balance sheets, income statements, statements of cash flow, and statements of changes in net assets.
We will provide you with full access to all financial records, supporting documentation, and relevant personnel necessary for the audit. We understand our responsibility for establishing and maintaining internal controls relevant to the preparation and fair presentation of financial statements. We also confirm that we have disclosed to you all known instances of fraud or suspected fraud affecting the entity involving management, employees with significant roles in internal control, and others where the fraud could have a material effect on the financial statements.
We will provide you with a management representation letter at the conclusion of the audit.
Please confirm your acceptance of this engagement by signing and returning a copy of this letter. We look forward to working with you.
Sincerely,
[Name]
[Title]
American Bar Association
Accepted:
_________________________
[Auditor Name]
[Date]
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How to Write American Bar Association Sample Letter To Auditor
Subject Line: Conciseness is Key
- Craft a subject line that is both succinct and informative.
- Instead of a convoluted sentence, opt for something like: “Client Matter: [Client Name] Audit Inquiry – Legal Representation.”
- The goal is immediate clarity for the recipient; eschew ambiguity.
Salutation: Formality Reigns Supreme
- Address the auditor with due respect and professionalism.
- “Dear [Auditor’s Name],” is a generally accepted and safe approach.
- If the auditor’s name is unascertainable, “Dear Audit Firm Partner,” is an acceptable alternative.
- Maintain a demeanor of deference throughout the entire communication.
Introductory Paragraph: Setting the Stage
- Begin by explicitly stating your firm represents the client in question, [Client Name].
- Reference the specific audit inquiry you are responding to – date, reference number, and subject matter.
- Proffer a brief overview of the letter’s purpose: outlining the scope of your representation and the limitations thereof.
Describing the Scope of Representation: Defining Boundaries
- Clearly delineate the legal services you’ve provided to the client.
- Be explicit about the time frame covered – from [start date] to [end date].
- Itemize the specific matters you’ve handled: litigation, contract negotiation, regulatory compliance, etc.
- Remember, precision is paramount; ambiguity invites misinterpretation.
Contingent Liabilities: Navigating Uncertainty
- Address any pending or threatened litigation, claims, or assessments against the client.
- For each matter, provide a concise summary of the facts, the legal issues involved, and your professional judgment regarding the likelihood of an unfavorable outcome.
- Quantify potential losses if feasible, but only if you possess a reasonable basis for doing so.
- Remember, you are offering a professional opinion, not a guarantee of outcome.
Limitations and Disclaimers: Exercising Prudence
- Explicitly state that your response is limited to matters to which you have given substantive attention in the form of legal consultation.
- Include a caveat that your firm may be unaware of all potential claims or assessments.
- Assert that your response is furnished solely for the auditor’s use in connection with the audit and should not be relied upon for any other purpose.
- Employ exculpatory language to shield your firm from undue liability.
Closing: Professional Demeanor
- Reiterate your willingness to cooperate further, should the auditor require additional clarification.
- Use a formal closing, such as “Sincerely,” or “Respectfully,”.
- Include your printed name, title, and the name of your law firm.
- Ensure your contact information (phone number and email address) is readily accessible.
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Frequently Asked Questions: ABA Sample Letter to Auditor
This section addresses common inquiries regarding the American Bar Association (ABA) sample letter to auditors. Understanding the purpose and proper use of this letter is crucial for attorneys responding to audit inquiries.
What is the purpose of the ABA sample letter to auditor?
The ABA sample letter provides guidance to lawyers responding to audit inquiries from their clients’ auditors. It outlines the principles governing the lawyer’s professional responsibility to provide information to auditors.
Is the ABA letter mandatory for all lawyers?
No, the ABA letter is not mandatory. It serves as guidance and a framework for lawyers, but specific circumstances may require variations in the response.
What information should be included in a response to an auditor’s inquiry?
The response should include information about pending or threatened litigation, claims, and assessments that the lawyer has devoted substantive attention to on behalf of the client, and which are considered probable of assertion and have a reasonable possibility of an unfavorable outcome.
What information is a lawyer typically not required to disclose to auditors?
A lawyer is generally not required to disclose information that is protected by attorney-client privilege or would violate the lawyer’s duty of confidentiality to the client.
Where can I find the most current version of the ABA sample letter?
The most current version of the ABA sample letter and related commentary can be found on the American Bar Association’s website or in publications related to audit inquiry responses and legal opinions.