Is least likely to be included in an engagement letter?

Which is usually included in an engagement letter?

An engagement letter is a written agreement that describes the business relationship to be entered into by a client and a company. The letter details the scope of the agreement, its terms, and costs. The purpose of an engagement letter is to set expectations on both sides of the agreement.

Which of the following is most likely to be included in the auditor’s engagement letter?

An auditor’s engagement letter most likely will include: Management’s acknowledgment of its responsibility for maintaining effective internal control.

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Which of the following matters generally is included in an auditor’s engagement letter?

The terms of the engagement should be documented in an engagement letter that states the following: (1) objective and scope of the audit, (2) responsibilities of the auditor and management, (3) inherent limitations of the audit and internal control, (4) the financial reporting framework, and (5) the expected form and …

Which of the following procedures would a CPA least likely perform in the planning?

Which of the following procedures would a CPA least likely perform during the planning stage of the audit? Communications to management and those charged with governance regarding significant deficiencies in internal control.

Why should the engagement letter be sent?

The purpose of the engagement letter is to inform the auditee of the nature of the engagement and to clarify the responsibilities of the parties involved. … Public sector auditors have to give serious consideration to issuing audit engagement letters when undertaking an audit.

Which of the following would most likely cause a CPA not to accept a new audit engagement?

Which of the following factors would most likely cause a CPA to decide not to accept a new audit engagement? Management’s disregard for internal control.

Which of the following steps should an auditor perform first to determine the existence?

Which of the following steps should an auditor perform first to determine the existence of related parties? Inquire about the existence of related parties from management.

Which of the following factors most likely would cause a CPA to decline to accept a new audit engagement?

Which of the following factors most likely would cause a CPA to decide not to accept a new audit engagement? Management’s disregard of its responsibility to maintain an adequate internal control environment.

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Which of the following is an advantage of describing internal control?

Which of the following is an advantage of describing internal control through the use of a standardized questionnaire? … Questionnaires are more flexible than other methods of describing internal control.

What’s included in an audit engagement letter?

What are the elements of the Audit Engagement Letter?

  • The objectives and scopes of the audit engagement. …
  • The responsibilities of the auditor. …
  • The responsibilities of the management. …
  • Identification of the applicable financial reporting framework that the entity uses in order to prepare the financial statements.

What shall be done by the auditor if there is request for change in the terms of audit engagement?

16. If the terms of the audit engagement are changed, the auditor and management shall agree on and record the new terms of the engagement in an engagement letter or other suitable form of written agreement.

Which of the following is least considered if the auditor has to determine whether specialized CIS skills are needed in an audit?

59 Cards in this Set

Which statement is incorrect when auditing in a CIS environment? d
Which of the following is least considered if the auditor has to determine whether specialized CIS skills are needed in an audit? d
Which of the following least likely indicates a complexity of computer processing? d

Which of the following procedures would a CPA most likely perform during the planning stage of the audit?

Which of the following procedures would a CPA most likely perform during the planning stage of the audit? Evaluate the reasonableness of management’s allowance for doubtful accounts. Determine areas where there is a higher risk of material misstatement. Evaluate the significance of uncorrected misstatements.

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Which of the following audit risk components may be assessed in quantitative terms?

All 3 components of audit risk may be assessed in quantitative terms such as percentages or in nonquantitative terms that range, for example, from high to low. A Risk of failing to discover material misstatements. B Assurance provided by substantive procedures. C Risk of misapplying auditing procedures.