B-12.06 The auditing firm of Rosellini and Rossellini was auditing the year-end financial statements of its client, City Center Foods. In the course of the audit, it was discovered that City Center was the defendant in a law suit involving a "food poisoning" case. City Center denies that it sold any tainted food products. City Center's attorney provided a representation letter regarding the ongoing litigation. Following is a portion of the reply received from the attorney: Dear Ms. Rossellini: You requested that we furnish you with certain information in connection with your examination of the accounts of City Center Foods, as of December 31, 20X7 . . . While this firm represents City Center Foods, our engagement has been limited to specific matters involving the ongoing litigation between City Center Foods and Randal Ransom. This response is necessarily limited to those matters. The Company has advised us it does not intend to waive the attorney-client privilege with respect to any information which the Company has furnished to us.
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