Chap 8 Engagement Letter

Question 1

Engagement letter on recurring audits

Answer 1

There is change in circumstances
1. Indication Client misunderstood the objective and scope
2. Change in senior mgmt
3. Significant Change in ownership
4. Change in legal or regulatory requirement
5. Change in nature or size of entity’s business
6. Change in AFRF
7. Change in reporting requirements
8. Revised or special terms if Audit Engagement

Question 2

Contents of Engagement letter

Answer 2

1. Purpose and scope of audit
2. Identification of AFRF
3. Responsibilities of auditor
4. Of mgmt
5. Expected form and content of report
   + statement of change