Audit Engagement Letter Contents

Audit Engagement Letter Contents

        1.    Objective & Scope of Audit

First content of engagement letter is to describe the objective and scope of audit.

        2.    Responsibility of Auditor

Second content of engagement letter is auditor responsibilities. Auditor responsibility may be explained in term of reporting responsibility, responsibility of obtaining audit evidence and planning and conducting audit in accordance with international auditing standards.

         3.    Responsibilities of Management

Third content of engagement letter is to describe the responsibilities of management i.e. responsibility of preparation of financials statement, establishing of relevant internal control for preparation of financial statement, access to the auditor to the record.

         4.    Applicable Financial Framework

Fourth content of the engagement letter is the mentioning of applicable financial reporting framework.