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.
