Week 2 - When to Send an Engagement Letter

Question 1

What is the first circumstance that would mean you need to send an engagement letter?

Answer 1

To all new clients before any professional work has been started

Question 2

What is the second circumstance that would mean you need to send an engagement letter?

Answer 2

To all existing clients who have not previously had such a letter

Question 3

What is the third circumstance that would mean you need to send an engagement letter?

Answer 3

Whenever there is a change in circumstances or a change in the audit firm - review annually to determine the existing letter is still appropriate

Question 4

For groups of companies a letter is required for…

Answer 4

For each company which is to be audited