Explain the purpose of and matters that must be included in an audit engagement letter
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Akash M.
In making a decision whether to accept or reject an engagement, an auditor should consider the competence, independence, and integrity of the prospective client's management, as well as its ability to serve the client properly. Furthermore, the auditor is expected to perform the following (choose all the items that apply to the previous statement): a. Obtain a preliminary knowledge of the client's business and industry to determine whether the client management has the degree of competence required by the engagement. b. Consider whether there are any threats to the firm's independence and objectivity, and if so, whether adequate safeguards can be established. c. Evaluate auditability. d. Investigate the integrity of the client's management through inquiry to appropriate parties or communication with the successor auditor. e. Agree on the terms of the engagement and prepare a management representation letter. f. Evaluate the firm's ability to serve the prospective client.
Adi S.
What are the objectives of an audit risk assessment? Explain why a risk assessment performed during audit planning sets the tone for the entire audit engagement. Also, comment on how the concept of risk assessment might be useful for any accountant at the outset of any assignment, including non-audit work.
Manasvee S.
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