CAS 210 - Agreeing the Terms of Audit Engagements

Question 1

What are the management and TCWG ( those charged with Governance) responsibilities

Answer 1

For the preparation of the financial statements in accordance with the applicable financial reporting framework, including, where relevant, their fair presentation;

(ii) For such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error;
(iii) To provide the auditor with:
a. Access to all information of which management is aware that is relevant to the preparation of the financial statements such as records, documentation and other matters;
b. Additional information that the auditor may request from management for the purpose of the audit; and
c. Unrestricted access to persons within the entity from whom the auditor determines it necessary to obtain audit evidence.

Question 2

What factors are relevant to the auditor’s determination of the acceptability of the financial reporting framework?

Answer 2

• The nature of the entity
• The purpose of the financial statements
• The nature of the financial statements
• Whether law or regulation prescribes the applicable financial reporting framework.