Audit Engagement letter Essay Example | Topics and Well Written Essays - 1000 words

examine Engagement letter - Essay ExampleThe key objectives of the scrutinize scope ar to analyze whether your merge financial statements are true and fair, in every(prenominal) material respect, in line with the provisions of multinational Accounting Standards. The firm will conduct the audit process in line with the guidelines stated in the International Audit Standards. This will include all recommended tests on accounting records, as well as other procedures we consider necessary to facilitate us in expressing an survey. If the opinion turns out to be something divergent other than unqualified, we will immediately notify your company and discuss the reasons in advance. In case we are unable to complete the audit within the stated period of 1.5 months, or keep difficulties in expressing the opinion within the stated duration, we may decline to express any opinion or to issue an audit report as a result of this letter. Audit Engagement Checklist Section 1. Auditors state With Regard To Auditors Report 2. Audit Procedures 1. In name To Clients Acceptance 2. In fictitious character To Clients Understanding 3. In quote To Audit Planning 4. In author To Fraud and Errors Considerations 5. In Reference To Internal Control Risks 6. In Reference To Work Done By Other Auditors 7. In Reference To Specialists If Used 8. In Reference To Audit Programs 9. In Reference To Audit Sampling 10. In Reference To Analytical Procedures 11. In Reference To Related Party Transactions 12. In Reference To Illegal Acts 13. In Reference To Audit Documentation 3. Working Papers 1. Significant Audit Areas 2. Cash 3. Receivables 4. Payables 5. Inventories 6. Assets 7. Liabilities 8. Business Consolidations and Combinations 4. available Areas 1. Human Resources 2. Key Ethical Requirements 3. Engagement Performance 5. Conclusion (Gupta, 2004. p. 44) The procedures will encompass examination of documentary film evidence backing the minutes in the financial statements, physica l examinations of assets, direct confirmation of payables and receivables. We will excessively randomly contact different customers, both creditors and debtors in reference to different assets and liabilities to provide evidence all transactions. The company will also request your company to provide written presentations from your attorneys as a divide of the engagement. As we approach the end of the audit assignment, we will need different written presentations from your company nigh financial statements as well as other related matters (Ron and Rosario, 2007, p. 26). An audit entails testing, on an examination basis, apocalypse of the financial statements, and evidence supporting the amounts. Therefore, the audit will entail judgment on the number of transactions to be tested and the target areas. We will also plan and perform the audit to attain sane say-so on whether the financial records are free from material misstatements and misrepresentations. This is because an audit avail reasonable assurance, and not absolute assurance. Obtaining absolute assurance may be expensive and consuming. This is because it involves examining all transactions it also exposes the assess to material errors, which makes it difficult to detect frauds and other deliberate misrepresentations. Another reason why absolute assurance is unnecessary is because the scope does not aim at immaterial errors, illegal acts, and frauds that do not have any material change on the accounting records. This proves that the service cannot be relied on to expose errors