Question

What is audit engagement letter? Discuss “the accepting the audit engagement”. (10 Marks)

What is audit engagement letter? Discuss “the accepting the audit engagement”.

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Audit engagement is a document that confirms acceptance of audit assignment of client. Audit engagement contains objectives of audit, scope of audit, auditors responsibilities and so on.

Audit engagement helps to reduce misunderstanding of terms of engagement. Auditor may issue letter of weakness along with audit engagement.

Before accepting engagement, the auditor receive appointment letter from client, after appointment letter the auditor inspect the client premises and understand the environment of client. After all this auditor may decide to accept or reject the assignment. Terms of engagement shall be communicated to client through letter of engagement (audit engagement letter).

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What is engagement letter in audit? What is its intended purpose?
What is engagement letter in audit? What is its intended purpose?
TRUE OR FALSE? In accepting an engagement letter,an auditor takes responsibilities to the public,the client,and other...
TRUE OR FALSE? In accepting an engagement letter,an auditor takes responsibilities to the public,the client,and other members of the profession?
explain in your own words the engagement letter content and importance in the audit process
explain in your own words the engagement letter content and importance in the audit process
discuss four of the matters that should be specified in an engagement letter
discuss four of the matters that should be specified in an engagement letter
What should be included in an engagement letter? (Several choices may be correct.) The applicable financial...
What should be included in an engagement letter? (Several choices may be correct.) The applicable financial reporting framework to be used for the statements Scope and timing of the audit Overview of the responsibilities of management The overall audit opinion Overview of the auditor’s responsibility for the preparation of the financial statements
35) Which is usually included in an engagement letter? A) The objectives of the engagement Identification...
35) Which is usually included in an engagement letter? A) The objectives of the engagement Identification of the financial reporting framework used by management Yes Yes B) The objectives of the engagement Identification of the financial reporting framework used by management No No C) The objectives of the engagement Identification of the financial reporting framework used by management No Yes D) The objectives of the engagement Identification of the financial reporting framework used by management Yes No 36) Which is...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are to prepare an audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant and equipment. Submit a well written audit program for cash....
1. Describe the purpose of a letter of engagement. 2. Based upon your current knowledge, what...
1. Describe the purpose of a letter of engagement. 2. Based upon your current knowledge, what do you believe it should include and why? 3. What do you see as the main challenges in developing a letter of engagement? 4. What are the main issues to be addressed when defining the scope of a project and a project plan? 5. What might be the main challenges to staying within the scope of the project? 6. What challenge do you anticipate...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT