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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?

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Answer #1

TRUE

In accepting an engagement letter, an auditor takes responsibilities to the public, the Client and other members of the profession.

First of all, engagement letter is given by client to the auditor for accepting engagements that are going to held at client's place.So it is essential to be responsible towards them.

Secondly, Auditor do need to be responsible towards public because if auditor in dependent on client after ignoring engagement terms it will lead to non compliance of ethical requirements.

Thirdly, An auditor shall be equally responsible for other members of profession because if an auditor will do any misconduct of code of ethics it will harm the prestige of whole profession.

Note: For any query, feel free to ask in the comment box!

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