Tuesday, November 08, 2011

Engagement Letter

Do not misunderstand me. I'm not talking about "marriage" but engagement letter by auditor. Just to remind myself that an engagement letter by auditor is a letter that provides a written agreement of terms of audit engagement between the auditor and management or those charged with governance. This is so to confirm there is an understanding of the terms of audit engagement between the auditor and management or those charged with governance and to avoid any misunderstanding in respect of audit work by the auditor. The matters covers in engagement letter include responsibility of auditor, responsibility of management, audit fee, the preparation of financial statements by management are prepared in accordance to the accounting framework, audit duration etc.

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