Which of the following best describes the
purpose of the engagement letter?
a. The engagement letter conveys to
management the detailed steps to be
applied in the audit process.
b. The engagement letter relieves the
auditor of some responsibility for the
exercise of due care.
c. By clearly defining the nature of the
engagement, the engagement letter
helps avoid and resolve
misunderstandings between CPA and client regarding the precise nature
of the work to be performed and the
type of report to be issued.
d. The engagement letter should be signed
by both the client and the CPA and
should be used only for independent
audits
purpose of the engagement letter?
a. The engagement letter conveys to
management the detailed steps to be
applied in the audit process.
b. The engagement letter relieves the
auditor of some responsibility for the
exercise of due care.
c. By clearly defining the nature of the
engagement, the engagement letter
helps avoid and resolve
misunderstandings between CPA and client regarding the precise nature
of the work to be performed and the
type of report to be issued.
d. The engagement letter should be signed
by both the client and the CPA and
should be used only for independent
audits