Engagement Terms And Engagement Letters Practice Test

A CPA is asked to perform an issuer integrated audit (financial statements and internal control over financial reporting) under PCAOB standards. Management wants the engagement letter to state that management is responsible only for providing access to records, while the auditor will be responsible for internal control. What is required to be included in the engagement letter for an issuer audit under PCAOB standards?

In a nonissuer financial statement audit, the audit documentation includes extensive copies of client invoices and contracts, but it does not clearly document the auditor’s conclusions on key assertions for revenue and the linkage to the procedures performed. The engagement partner is evaluating documentation sufficiency. Which documentation is necessary to support audit conclusions under AICPA standards?