Importance of Obtaining Claims from Customers under Litigation
In the course of an audit, it is crucial for auditors to obtain claims from customers under litigation from the entity being audited. This information is essential for auditors to gain a clear understanding of the financial position of the entity and to assess the potential impact on the financial statements.

Verification of Accuracy
Obtaining claims from customers under litigation allows auditors to verify the accuracy of the entity's financial statements. By comparing the claims with the information provided by the entity, auditors can ensure that all liabilities related to litigation are properly disclosed in the financial statements.

Evaluation of Financial Impact
Auditors need to assess the potential financial impact of the claims from customers under litigation on the entity's financial position. This information is crucial for auditors to provide an accurate opinion on the entity's financial statements and to identify any potential risks or uncertainties that may affect the entity's ability to continue as a going concern.

Disclosure in Financial Statements
Claims from customers under litigation need to be properly disclosed in the financial statements in accordance with accounting standards and regulations. Auditors play a key role in ensuring that these claims are accurately reflected in the financial statements to provide transparency and clarity to stakeholders.

Risk Assessment
By obtaining claims from customers under litigation, auditors can also assess the risks associated with the entity's legal disputes. This information helps auditors to evaluate the adequacy of the entity's provisions for litigation and to determine the potential impact on the entity's financial performance and reputation.
In conclusion, obtaining claims from customers under litigation is a critical aspect of the audit process as it helps auditors to verify the accuracy of financial statements, evaluate the financial impact of litigation, ensure proper disclosure in financial statements, and assess the risks associated with legal disputes.