Attorney's Letter

AAA

DEFINITION of 'Attorney's Letter'

A letter sent by a CPA to the client's attorney. The attorney's letter serves as a verification for information pertaining to litigation related to management. This letter apprises the auditor of any pending legislation against the client that could result in financial loss and impact the company's balance sheet and cash flow.

INVESTOPEDIA EXPLAINS 'Attorney's Letter'

The Attorney's Letter constitutes a major procedure in the audit process. Auditors will request this letter if they have any doubt that the management of the company they are auditing has litigation pending against it that they have not disclosed to the auditor. This letter will then provide them with the information that they need.

RELATED TERMS
  1. Administrative Law

    The body of law that governs the administration and regulation ...
  2. Financial Statements

    Records that outline the financial activities of a business, ...
  3. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  4. Auditor's Report

    Recorded in the annual report, the auditor's report tests to ...
  5. Certified Public Accountant - CPA

    A designation given by the American Institute of Certified Public ...
  6. Cumis Counsel

    Legal counsel chosen by the insured when the insurer has a conflict ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Investing Basics

    12 Things You Need To Know About Financial Statements

    Discover how to keep score of companies to increase your chances of choosing a winner.
  2. Insurance

    Evaluating The Board Of Directors

    Corporate structure can tell you a lot about a company's potential. Learn more here.
  3. Taxes

    Surviving The IRS Audit

    Keeping thorough records and knowing the penalties make this experience easier than you'd expect.
  4. Personal Finance

    A Look At Accounting Careers

    More than just crunching numbers, this career blends detective work with trouble shooting.
  5. Retirement

    Avoid An Audit: 6 "Red Flags" You Should Know

    Don't make yourself a target - steer clear of these attention-grabbing tax-filing practices.
  6. Professionals

    An Inside Look At Internal Auditors

    Find out why these number crunchers are part of every chief officer's dream team.
  7. Professionals

    Examining A Career As An Auditor

    Stricter government regulations have put auditing professionals in demand.
  8. Investing

    What's a Debit Note?

    A debit note is a document used by a seller to inform a purchaser of a dollar amount owed. As the name indicates, it is a note from the seller that a debit has been made to the purchaser’s account. ...
  9. Investing

    What's Capitalization?

    Capitalization has different meanings depending on the context.
  10. Fundamental Analysis

    The Best 5 Online Accounting Systems For Small Business

    Running a small business can be difficult, but thanks to these online accounting services, taking care of payroll doesn't have to be.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center