In analyzing legal expense for the boastman bottle company

Reference no: EM13589103

In analyzing legal expense for the Boastman Bottle Company, Mary Little, CPA, observes that the company has paid legal fees to three different law firms during the current year. In accordance with her CPA firm's normal operating practice, Little requests standard attorney letters as of the balance sheet date from each of the three law firms.

On the last day of field work, Little notes that one of the attorney letters has not yet been received. The second letter contains a statement to the effect that the law firm deals exclusively in registering patents and refuses to comment on any lawsuits or other legal affairs of the client. The third attorney's letter states that there is an outstanding unpaid bill due from the client and recognizes the existence of a potentially material lawsuit against the client but refuses to comment further to protect the legal rights of the client.

Required

Evaluate Little's approach to sending the attorney letters and her follow-up on the responses.
What should Little do about each of the letters?

Reference no: EM13589103

Questions Cloud

Universal calendar company began the year with accounts : universal calendar company began the year with accounts receivable and inventory balances of 130000 and 50000

Beyond inquiries and analytical procedures what are the : you are doing a review services and related tax work engagement for murphy construction company. you have made

For a satellite to maintain a circular orbit around the : question for a satellite to maintain a circular orbit around the earth what parameters must be balanced? what would

Mxsystems inc sells computer hardware to end consumers : maxsystems inc. sells computer hardware to end consumers. its most popular model the cx30 is sold as a bundle which

In analyzing legal expense for the boastman bottle company : in analyzing legal expense for the boastman bottle company mary little cpa observes that the company has paid legal

A spring with a spring constant of 270 nm iscompressed by : a spring with a spring constant of 270 nm iscompressed by 14cm.a 880g ball is attached to the end and the spring is

Sara owns a sole proprietorship and phil is the sole : sara owns a sole proprietorship and phil is the sole shareholder of a c regular corporation. each business sustained a

Describe how johnsons testing in phases i-iii of the audit : elizabeth johnson cpa has completed the audit of notes payable and other liabilities for valley river electrical

To raise operating funds signal aviation sold an airplane : to raise operating funds signal aviation sold an airplane on january 1 2013 to a finance company for 1030000. signal

User Account

All Pages