Audit Engagement Proposal
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| After accepting the Audit Engagement Proposal |
After Accepting Audit Engagement Proposal, and after the Auditor.
Audit firm
gets satisfied by doing all the preliminary engagement activities. Auditor
works on the Engagement letter.
The An
engagement letter is not only a requirement by ISA but also act as contract
between two parties i.e.
Auditor and
Corporate.
The Engagement letter has a standard format but is very flexible in nature too.
Audit
Engagement Letter SHALL include:
a) The aim and capacity of the audit;
b) Identification of the AFRF;
c) The responsibilities of the auditor;
d) The tasks of organization (also called Premise) (types of auditing).
e) Probable figure
and contented of intelligence to be issued by the auditor.
And a declaration that there may be situation in which a declaration may be different from its probable form and contented.
An audit appointment
correspondence also consist of the following:
a) Amplification of the capacity of the audit.
b) Intrinsic restrictions of an audit intrinsic restrictions of internal control.
d) Preparations concerning the scheduling and recital of the audit, counting the masterpiece of the audit team and timing.
e) Fee or Basis of fee.
f) Accord of organization to notify the auditor of succeeding events have an effect on monetary statements (after date of auditor’s report till issuance of financial statements).
g) The hope that organization will supply printed depiction communication.
(Orientation to any other message as a result of the audit appointment (e.g. Letter of Weakness).
Preparations with reference to participation of precursor auditor, section auditor, specialist, inner auditor, excellence organize reviewer.
After tolerant
the Audit appointment suggestion.
After tolerant the Audit appointment suggestion. A detailed sample of suggestion and appointment letter.