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.
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.