The Audit Process - Setting Terms for the Engagement - CPA Auditing and Attestation (AUD)

Among the items communicated with predecessor auditors are any disagreements with management. The purpose of this communication is to disclose any attempt to circumvent the applications of GAAP.

In developing an audit plan, the engagement partner should identify the scope of the audit. Management is not involved in determining what opinion may be given by the auditors.

At a minimum, an understanding with a client should include the objectives and limitations of the engagement, as well as the responsibilities of management and of the auditor.

The auditor is required to establish an understanding with the client, and this understanding should be documented in the form of an engagement letter. The understanding should encompass management's responsibilities which include providing the auditor with a representation letter at the conclusion of the engagement.

If there is a piece of information critically important to the understanding of financial statements, the auditor will point it out through an Other-Matter paragraph.

Auditors' communication with predecessor auditor may be either oral or in written form. The preferred standard however is written.

Among the items communicated with predecessor auditors are any disagreements with management. The purpose of this communication is to disclose any attempt to circumvent the applications of GAAP.

In developing an audit plan, the engagement partner should identify the scope of the audit. Management is not involved in determining what opinion may be given by the auditors.

At a minimum, an understanding with a client should include the objectives and limitations of the engagement, as well as the responsibilities of management and of the auditor.

The auditor is required to establish an understanding with the client, and this understanding should be documented in the form of an engagement letter. The understanding should encompass management's responsibilities which include providing the auditor with a representation letter at the conclusion of the engagement.

If there is a piece of information critically important to the understanding of financial statements, the auditor will point it out through an Other-Matter paragraph.

Auditors' communication with predecessor auditor may be either oral or in written form. The preferred standard however is written.

Among the items communicated with predecessor auditors are any disagreements with management. The purpose of this communication is to disclose any attempt to circumvent the applications of GAAP.

In developing an audit plan, the engagement partner should identify the scope of the audit. Management is not involved in determining what opinion may be given by the auditors.

At a minimum, an understanding with a client should include the objectives and limitations of the engagement, as well as the responsibilities of management and of the auditor.

The auditor is required to establish an understanding with the client, and this understanding should be documented in the form of an engagement letter. The understanding should encompass management's responsibilities which include providing the auditor with a representation letter at the conclusion of the engagement.

If there is a piece of information critically important to the understanding of financial statements, the auditor will point it out through an Other-Matter paragraph.

Auditors' communication with predecessor auditor may be either oral or in written form. The preferred standard however is written.

Among the items communicated with predecessor auditors are any disagreements with management. The purpose of this communication is to disclose any attempt to circumvent the applications of GAAP.