Conversations between the board of directors of Acme Inc. and the engagement partner of the audit, Angelo Del Santo, have revealed that Acme uses three law firms. Ball & Partners performs all legal work related to property transfers, mortgages, and leases. Brown & Associates handle all employment matters, such as claims for unfair dismissal and complex employment contracts. Zimmerman & Co. are retained for all other matters, such as agreements relating to products and suppliers and any international matters.
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a. Discuss the information that Angelo wants to obtain from the attorneys and how this information is obtained.
b. What procedures could Angelo perform to discover if any other law firms have performed work for Acme during the fiscal year?