Example Audit Engagement - 2570 Words

EXAMPLE AUDIT ENGAGEMENT LETTER This example engagement letter is intended solely for general educational purposes. It is not intended for the purpose of providing specific legal, accounting, or other professional advice to any particular recipient or with respect to any particular jurisdiction. The author, publisher, and distributor of this document (1) make no representations, warranties, or guarantees as to its technical accuracy or compliance with any law ( federal, state, or local) or professional standard; and, (2) assume no responsibility to any recipient of this document to correct or update its contents for any reason, including changes in any law or professional standard. Before using any engagement letter in your†¦show more content†¦Our audit will include obtaining an understanding of your internal controls sufficient to plan the audit and to determine the nature, timing, and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal controls or t o identify reportable conditions, that is, significant deficiencies or material weaknesses in the design or operation of internal control. Accordingly, we have no responsibility to identify and communicate significant deficiencies or material weaknesses in your internal controls as part of this engagement, and our engagement cannot be relied upon to disclose the same. However, during the audit, if we become aware of such reportable conditions, we will communicate them to you. Prior to preparation and execution of this engagement letter, we discussed with you the fact that we provide clients with services specifically focused on identifying and addressing weaknesses in internal controls (internal control review), and on searching for the existence of fraud within your company (fraud audit). We further explained the additional costs associated with such different levels of service. After consideration of such services, you have informed us that you wish to retain us to perform only the audit services described in this letter. You are responsible for adoptingShow MoreRelatedStandards, Norms And Standards Of Auditing And The International Standard On Audit Quality1622 Words   |  7 Pageson Auditing (ISAs) and the International Standard on Audit Quality (ISQC). Question 1 Ethical Standards includes some audit fundamental principles and basic audit procedures for the auditors to follow in order to be objective and independent. ESs has eight parts, which cover the Glossary, ESRA, ES 1 to 5 and ES Provisions Available for Small Entities. Hereinto, ES 1 to 5 in detail introduce the integrity, objectivity and independence in the audit of financial statements (FRC, 2006). These guidelinesRead MoreThe Objective Of Auditing Standard918 Words   |  4 Pagesauditor plans the audit so it can be conducted efficiently. The engagement partner is responsible for planning the audit and making sure it is performed. If the engagement partner seeks assistance from engagement team members he or she is responsible for making sure they comply with the requirements for this standard. Planning the audit is not a short-term task and often should be started after the completion of the previous audit and continue to until the completion of the current audit. During beginning Read MoreThe International Standards On Auditing1073 Words   |  5 Pagesof this ISA 1. The International Standards on Auditing (ISAs) apply to group audits. This ISA deals with special considerations that apply to group audits, in particular those that involve component auditors. 2. An auditor may find this ISA, adapted as necessary in the circumstances, useful when that auditor involves other auditors in the audit of financial statements that are not group financial statements. 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Why or why not? Do you believe that Lauren Hutchinson behaved unethically by underreporting the time she worked on that engagement? Defend your answer. If I was in Hamilton Wong’s position, I think I would report all of the time I spent working on the Wille Lomas audit, even if it exceeded the budget. As an accountant, my ethical responsibility is to be honest and have integrity and by not reporting the actual amount of time I worked on the audit, I would be lying.Read MoreA Report On Auditor Independence1363 Words   |  6 PagesAudit Independence Assessment Item 02 –Q1 Author- I U Amarasiriwardhana Abstract This report discusses importance of auditor independence nowadays and how statutory, regulatory code of ethics has been involved in enhancing it and how non-audit services impair the independence of auditors. Table of contents 1.0 Introduction 2.0 Why Independence Important for auditors 3.0 How enhanced auditors independence 4.0 Non-audit services provided by the auditor to their audit client. 5.0 What are the arrangementsRead MoreAcct 3708 Lecture Pdf1701 Words   |  7 PagesUniversity of New South Wales School of Accounting Auditing and Assurance Services 2013 LECTURE 1 Introduction to the Audit Function Assurance Framework Australian Corporate Audits Auditing Standards Lecture Overview †¢ Announcements †¢ Overview course requirements †¢ Introduction to the course – Assurance – Auditing – Legal requirements – Auditing standards Announcements †¢ 1. Tutorial Allocation – Once classes are full no more will be admitted – No new classes will be scheduled Read MoreAn Investigation Of An Audit1561 Words   |  7 Pages An audit can be described as an official inspection of an organization s accounts and is typically conducted by an independent body. Companies often hire external auditors in addition to auditing themselves. External auditors are accountants who work independently of a particular company. They examine company records and operations to ensure financial statements are accurate. External auditors are important to establishing your small business credibility and to ensuring compliance with