Your question: Which of the following must be included in an audit engagement letter?

The responsibilities of the auditor; The responsibilities of management; The identification of an applicable financial reporting framework; and. Reference to the expected form and content of any reports to be issued.

What should be included in an audit engagement letter?

The engagement letter documents and confirms the auditor’s acceptance of the appointment, the objective and scope of the audit, the extent of the auditor’s responsibilities to the client and the form of any reports. Management’s responsibility for establishing and maintaining effective internal control.

Which of the following matters are to be included in an audit engagement letter?

The terms of the engagement should be documented in an engagement letter that states the following: (1) objective and scope of the audit, (2) responsibilities of the auditor and management, (3) inherent limitations of the audit and internal control, (4) the financial reporting framework, and (5) the expected form and …

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Which of the following should ordinarily be included in the engagement letter?

An engagement letter should ordinarily include information on the objectives of the engagement and: CPA Responsibilities, Client Responsibilities, Limitation of engagement | Study.com.

Is an engagement letter required for an audit?

. 03 The terms of the audit engagement may be set out in an engagement letter or other written agreement. … When other services such as tax, accounting or management advisory services are to be provided by the auditor’s firm, separate engagement letters may be appropriate.

What is the primary purpose of an audit engagement letter?

The engagement letter documents and confirms the auditor’s acceptance of the appointment, the objective and scope of the audit, the extent of the auditor’s responsibilities to the client and the form of any reports. Management’s responsibility for establishing and maintaining effective internal control.

What are the different phases of audit work?

Audit engagements are performed in three general phases: planning, fieldwork & review, and reporting.

Which of the following is correct regarding internal controls?

The correct answer is letter “A”: An inherent limitation to internal control is the fact that controls can be circumvented by management override. Explanation: Internal controls limit fraud and other internal activities of the organizations.

Which of the following is the most likely first step the auditors would perform at the beginning of an initial audit engagement?

Which of the following is the most likely first step the auditors would perform at the beginning of an initial audit engagement? Prepare a rough draft of the financial statements and of the auditors’ report.

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What type of transactions ordinarily have high inherent risk?

The type of transactions that ordinarily have a high inherent risk because they involve management judgments or assumptions are referred to as: A) Estimation transactions.

Which of the following situations would cause a CPA to not accept a new audit engagement quizlet?

Which of the following situations would cause a CPA to not accept a new audit engagement? The prospective client has fired its prior auditor. The CPA lacks a thorough understanding of the prospective client’s operations and industry.

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