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

What is included in an auditor’s engagement letter?

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. Management’s responsibility for establishing and maintaining effective internal control.

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 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.

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In which of the following instances would it be appropriate for the auditor to refer to the work of an appraiser in the auditor’s report?

In which of the following instances would it be appropriate for the auditor to refer to the work of an appraiser in the auditor’s report? … An adverse opinion is expressed based on a difference of opinion between the client and the auditor’s external specialist about the value of certain assets.

Is an engagement letter required for an audit?

Abstract- Obtaining engagement letters is not a requirement of generally accepted auditing standards, but it makes good business sense. … Generally, it affords the opportunity to detail the scope of the engagement and to define the responsibilities between the auditor or accountant and the client.

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 are the primary purpose of an engagement letter in the audit?

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. Management’s responsibility for establishing and maintaining effective internal control.

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.

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Who prepares an engagement letter?

When taking a new client, an auditor creates an engagement letter to solidify audit arrangements between the audit firm and the client. The letter serves as the contract, detailing the duties and obligations on either side of the table. Your CPA firm prepares the engagement letter.

Which evidence is more reliable?

Evidence provided by original documents is more reliable than evidence provided by photocopies or facsimiles, or documents that have been filmed, digitized, or otherwise converted into electronic form, the reliability of which depends on the controls over the conversion and maintenance of those documents.

Is PCAOB an audit specialist?

Staff Guidance

The PCAOB staff provides guidance that highlights aspects of new requirements that apply when auditors use the work of specialists in an audit and when an auditor uses the work of a company specialist as audit evidence.

What is PCAOB auditing standards?

The PCAOB seeks to establish and maintain high quality auditing and related professional practice standards for audits of public companies and other issuers, and broker-dealers in support of our mission to protect investors and further the public interest in the preparation of informative, accurate, and independent …