Choice "C" is correct. The auditor does not consult with the client about audit procedures that will be performed.
Choice "a" is incorrect. Since the engagement letter serves as a contract between the auditor and client, fee arrangements are typically disclosed in the letter.
Choice "d" is incorrect. The arrangements to contact the predecessor auditor is appropriate for inclusion in an engagement letter.
Choice "b" is incorrect. The fact that audit risk exists and that an audit only provides reasonable assurance of the detection of errors and fraud is typically disclosed in an engagement letter.
