Ch3 Flashcards
1
Q
This document sets out terms of an audit engagement to avoid misunderstandings between auditor and client.
A
engagement letter
2
Q
Who drafts the engagement letter?
A
Auditor
3
Q
What are the three phases of an audit?
A
- Risk Assessment Phase
- Risk Response Phase
- Reporting Phase
4
Q
Inherent risk and control risk combine to make what?
A
The risk of material misstatement.
