Question

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
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Answer #1

From the given options, the following should be included in the engagement letter -

1. The applicable financial reporting framework to be used for the statements.

2. Scope and timing of Audit.

3. Overview of responsibilities of management.

The overall audit opinion is not included in engagement letter. It is a part of audit report.

Overview of the auditor’s responsibility for the preparation of the financial statement is not applicable. Auditor has no responsibility to prepare financial statements. He examines the financial statements and expresses opinion thereon.

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