3.1 - Items Included in an Engagement Letter

Question 1

What is the first item to be included in an engagement letter?

Answer 1

The objective of the audit of financial statements

Question 2

What is the second item to be included in an engagement letter?

Answer 2

The scope of the audit, which could include reference to applicable legislation, regulations, or pronouncements of professional bodies to which the auditor adheres

Question 3

What is the third item to be included in an engagement letter?

Answer 3

The auditor’s responsibility

Question 4

What is the fourth item to be included in an engagement letter?

Answer 4

The reporting framework that is applicable for the financial statements being prepared, e.g International Financial Reporting Standards

Question 5

What is the fifth item to be included in an engagement letter?

Answer 5

Management’s responsibility to prepare the financial statements and to provide the auditor with unrestricted access to whatever records, documentation and other information is requested in connection with the audit

Question 6

What is the sixth item to be included in an engagement letter?

Answer 6

The form of any reports of results of the engagement