Terms of engagement
The new UK GAAP and a new helpsheet from the Technical Advisory Service are just two reasons for auditors to reassess their letters of engagement.
All auditors appreciate how important letters of engagement are, yet occasionally some may still overlook the need to update the firm’s engagement letter templates and examples or the need to update individual engagement letters for particular clients or services.
File reviewers sometimes find client files containing engagement letters that are out-of-date or fall short in some other way. For example, by not including (when appropriate) any arrangements concerning the involvement of other auditors and experts in some aspects of the audit.
This is an extract from an article in the October 2016 edition of Audit & Beyond, the magazine of the Audit and Assurance Faculty.
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