ACCA AAA ^INT Syllabus C. Practice Management - Engagement letter - Notes ^{3 / 3}

The engagement letter is sent before the audit to the client confirming their acceptance of the audit

Contents

ISA 210 Terms of Engagement gives guidance as to their content, but as a rule most will include:

• The Objective of the audit.

• Managements’ responsibility for the Financial Statements.

• The scope of the audit including reference to legislation and professional standards.

• The form of report to be used

• Use of the work of internal audit

• Reference to inherent limitations of an audit

• Access to information to be allowed

• Deadlines and confidentiality

• Expectations of management representations

• Fees

• Complaints procedures