Any Help would be appreciated thankyou.
2007-10-30 05:01:04 · 3 answers · asked by Mr B 1 in Business & Finance ➔ Corporations
Audit Engagement Letters
It is in the interest of both client and auditor that the auditor sends an engagement letter, preferably before the commencement of the engagement, to help in avoiding misunderstandings with respect to the engagement. The engagement letter documents and confirms the auditor’s acceptance of the appointment, the objective and scope of the audit, the extent of the auditor’s responsibilities to the client and the form of any reports.
This is an auditing standard - ISA 210 - which I've attached for you at the link. If you have no time to read the whole std, scroll to the end - Page 7 - Appendix 1: Example of an Audit Engagement Letter
2007-11-03 02:24:39 · answer #1 · answered by Sandy 7 · 1⤊ 0⤋
An engagement letter is a letter issued when a new audit is taken on. It spells out what the auditor and directors responsibilities are and exactly how the audit will take place.
They are normally issued around every 5 years and someone from the board of directors must sign it to see they agree to their responsibilities.
2007-10-30 08:46:17 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I'm an auditor and have never used the term (perhaps it is American) - however, it sounds a bit like what i would call a TOR letter, where the client and the auditor agree the scope, the terms of reference and the method of the audit along with the timescale for reporting....
2007-10-30 05:05:50 · answer #3 · answered by eriverpipe 7 · 1⤊ 1⤋