(ii) Matters to be included in an audit engagement letter:
– The objective and scope of the audit;
– The responsibilities of the auditor;
– The responsibilities of management;
– Identification of the financial reporting framework for the preparation of the financial statements;
– Expected form and content of any reports to be issued;
– Elaboration of the scope of the audit with reference to legislation;
– The form of any other communication of results of the audit engagement;
– The fact that some material misstatements may not be detected;
– Arrangements regarding the planning and performance of the audit, including the composition of the audit team;
– The expectation that management will provide written representations;
– The basis on which fees are computed and any billing arrangements;
– A request for management to acknowledge receipt of the audit engagement letter and to agree to the terms of the engagement;
– Arrangements concerning the involvement of internal auditors and other staff of the entity;
– Any obligations to provide audit working papers to other parties;
– Any restriction on the auditor’s liability;
– Arrangements to make available draft financial statements and any other information;
– Arrangements to inform the auditor of facts that might affect the financial statements, of which management may become aware during the period from the date of the auditor’s report to the date the financial statements are issued.
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