The ABA Statement On Audit Responses: A Framework That Has Stood The Test Of Time

This article originally appeared in Vol. 75, No. 3 of The Business Lawyer by the Business Law Section of the American Bar Association.

By Alan J. Wilson, Stanley Keller, Randall D. McClanahan, Noe¨l J. Para, James J. Rosenhauer, and Thomas W. White, Audit Responses Committee, ABA Business Law Section*

This article summarizes key developments in the preparation of audit response letters concerning loss contingencies since the American Bar Association Statement of Policy Regarding Lawyers' Responses to Auditors' Requests for Information was published in 1976. These developments illustrate both the utility of the framework set forth in the ABA Statement and the responsiveness of the American Bar Association through the Business Law Section Audit Responses Committee (and predecessor committees) to issues arising under the ABA Statement and changes in accounting and auditing standards and practice. The ABA Statement, throughout its use, has served two important