Scribd
Upload
83 views5 pages

Audit Engagement Terms and Responsibilities

This document discusses agreeing the terms of an audit engagement. It covers responsibilities of the auditor and management, applicable financial reporting frameworks, form and content of audit reports, limitations, basis of fees, and circumstances for changing the terms of an audit engagement.

Uploaded by

bilaladnan.120802
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
83 views5 pages

Audit Engagement Terms and Responsibilities

This document discusses agreeing the terms of an audit engagement. It covers responsibilities of the auditor and management, applicable financial reporting frameworks, form and content of audit reports, limitations, basis of fees, and circumstances for changing the terms of an audit engagement.

Uploaded by

bilaladnan.120802
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ISA 210 AGREEING THE TERMS OF AUDIT ENGAGEMENT

FRF acceptable

Precondition

Premise

Preparation of FS For IC to prepare FS free To provide the auditor


in a/c with IFRS from MM whether due to with all information
error or fraud
1
Objective and Scope of
Audit of Financial Statements

2 Responsibilities of Auditor

Agreeing the
terms of
engagement
3 Responsibilities of
Management

Identification of Applicable
4 Financial Reporting
Framework

Reference to the expected


5 form and content of
Audit report
Inherent
limitation
Obligation to Management
provide wp will provide
to others WR

Arrangement
to be made Additional To inform
with previous about SE
auditor matter

To involve Basis
internal
of fees
auditor
To involve
other
auditor’s
expert
1 Change in

Senior Management

Ownership

Recurring Financial Reporting


Framework

audit
Nature and size of
Entity’s business
Legal or regulatory
requirement
Other reporting
requirement

2 Any revised or special


terms of engagement
Management request to
change Engagement letter

Reasons for change If the auditor is unable to agree to


a change of the terms of the audit
Course of Action engagement and is not permitted
Reasonable basis by management to continue the
if Not reasonable
original audit engagement,
Change in circumstance the auditor shall:
affecting the needs
for the service Withdraw from the audit engagement
Course of action Not Reasonable
if reasonable basis where possible under applicable law
Misunderstanding as to or regulation; and
nature of an audit as
originally requested If the terms of the audit A change may not be Determine whether there is any
engagement are considered reasonable if obligation, either contractual or
changed, the auditor and it appears that change otherwise, to report the circumstances
management shall agree relates to information to other parties, such as those charged
on and record the new that is incorrect, with governance, owners or regulators
terms of the engagement incomplete or otherwise
in an engagement letter. unsatisfactory

E.g.: where auditor is unable to


obtain SAAE regarding
receivable and entity ask the
audit engagement to be
changed to review
engagement

You might also like