Question 2a
Marking Guide
Contents of an engagement letter – 3 marks. 0.5 mark per point.
objective of the audit of the financial statements | 0.5 |
| management’s responsibility for the financial statements | 0.5 |
| the scope of the audit with reference to appropriate legislation | 0.5 |
| the form of any report or other communication of the results of the engagement | 0.5 |
| the auditor may not discover all material errors | 0.5 |
| provision of access to the auditor of all relevant books and records | 0.5 |
| arrangements for planning the audit | 0.5 |
| agreement of management to provide a representation letter | 0.5 |
| request that the client confirms in writing the terms of engagement | 0.5 |
| description of any letters or reports to be issued to the client | 0.5 |
| basis of fee calculation and billing arrangements | 0.5 |
| maximum marks | 3 |