When interacting with an auditor, especially in a legal context, it is essential to provide clear and structured communication. The American Bar Association (ABA) often sets standards for such communications. Below is a sample letter that can be used as a template when writing to an auditor to ensure compliance and clarity.
Sample Letter to Auditor
[Your Law Firm’s Name][Your Law Firm’s Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date] [Auditor’s Name]
[Auditing Firm’s Name]
[Auditing Firm’s Address]
[City, State, ZIP Code]
Subject: Response to Audit Inquiry
Dear [Auditor’s Name],
This letter is in response to your audit inquiry dated [Date of Auditor’s Inquiry] concerning the pending or threatened litigation, claims, and assessments involving our client, [Client’s Name], for the period ending [Date].
As per the American Bar Association guidelines and in accordance with our client’s instructions, we provide the following information:
- Pending or Threatened Litigation: We have reviewed the litigation matters involving [Client’s Name] that are currently pending or threatened. Below is a summary of these matters:
- Case Name/Number: [Case Name/Number]
- Court/Location: [Court/Location]
- Nature of Litigation: [Short description of the litigation]
- Status: [Current status, e.g., in discovery, awaiting trial, settled]
- Potential Financial Impact: [Estimate, if available, or indicate if it cannot be reasonably determined]
- Claims and Assessments: Below are any claims or assessments believed to be outstanding as of [Date]:
- Claimant: [Name of Claimant]
- Nature of Claim: [Short description of the claim]
- Amount Claimed: [Claim Amount, if known]
- Current Status: [Status of the claim]
Please note that our response is limited to matters which, to our knowledge, are required to be disclosed pursuant to the ABA Statement of Policy Regarding Lawyers’ Responses to Auditors’ Requests for Information. This letter does not cover any matters which are not required to be disclosed under such guidelines.
We will continue to update our records as new information and developments occur. Should you have any further questions or need additional information, please feel free to contact us directly.
Thank you for your attention to this matter.
Sincerely,
[Your Signature (if sending a hard copy)][Your Printed Name]
[Your Position]
[Your Law Firm’s Name]
Tips for Writing a Letter to an Auditor
- Be Clear and Concise: Clearly outline all requested information without unnecessary detail, focusing on the auditor’s specific inquiries.
- Follow ABA Guidelines: Ensure the letter adheres to ABA standards for responding to audit inquiries, ensuring compliance and clarity.
- Maintain Client Confidentiality: Only disclose information that is necessary and approved by the client, maintaining confidentiality where required.
FAQs on Writing a Letter to an Auditor
- What should be included in a letter to an auditor?
It should include a response to specific audit inquiries, summary of litigation matters, claims, and assessments, following ABA guidelines. - Why are ABA guidelines important in audit letters?
ABA guidelines help ensure that the information provided is compliant, accurate, and protects client confidentiality. - Can the letter include estimates of financial impact?
Yes, if available, but it should also state if such estimates cannot be reasonably determined. - Is it necessary to update the auditor on new developments?
Yes, it’s important to keep the auditor informed of any significant changes or developments. - Who should sign the letter to the auditor?
The letter should be signed by the attorney or legal representative handling the client’s matters with the auditing firm.