Week 2 - The Letter of Engagement

Question 1

What does the letter of engagement do?

Answer 1

Records the agreed terms of the audit engagement

Question 2

What is the first term of the letter of engagement about?

Answer 2

The objective and scope of the audit of the financial statements

Question 3

What is the second term of the letter of engagement about?

Answer 3

The responsibilities of the auditor

Question 4

What is the third term of the letter of engagement about?

Answer 4

The responsibilities of the management

Question 5

What is the fourth term of the letter of engagement about?

Answer 5

Identification of the applicable financial reporting framework for the preparation of the financial statements

Question 6

What is the fifth term of the letter of engagement about?

Answer 6

Reference to the expected form and content of any reports to be issued by the auditor and a statement that there may be circumstances in which a report may differ from its expected form and content