Question

discuss four of the matters that should be specified in an engagement letter

Answer 1

Answer)

1) Name and description of both the parties:

It contains the names and details of the client and the auditor who is engaged.

2)The management and auditor responsibilities:

It contains the responsibiliies of management like providing reasonable assurance about accounting,furnish the auditor the necessary evidence and other support.

3)Audit fees and payments:

It includes the auditors fee and other payments for his expenses incurred.

4)The period of validity of the engagement letter:

It contains when such engagement expires and circumstances & consequences for removal of auditor by the management or resignation by the auditor himself.